Automotive industry is globalised. Not it has excellent companies which manufacture cars and commercial vehicles with latest technology, but there is also excellence in business strategies and consumer market. The industry sells nearly 60 million motor vehicles per year which includes cars and other vehicles produced all over the world.
The industry continues to generate high revenues and receives high reputation level from many parts of the world. In the year 2007, 79.9 million new automobiles were sold all over the world. Major markets in Middle East, Asia, America, Africa and Europe have received excellent growth in this industry.
The benefits given by industry
It may be for traveling or for transportation, the industry has huge demand for vehicles. Every small and medium sized business takes the assistance of a truck to transport goods. Transportation of goods through trucks is the main medium and keeping this in view, the industry manufactures light and heavy trucks.
This way, it not promotes businesses but also helps in creation of employment and enables better business communications. Every brand of consumer goods can be transported. It may be electronics, food, furniture, apparel, wood, metal or pharmaceutical. All finished goods and raw materials can be transported through commercial vehicles.
Oil price hike affect on the industry
In the year 2008, crude oil prices have deeply affected the industry. But as the price reached to a controlled level, the industry regained its position in 2009. Fuel being the main source for the industry, it is important that oil price should be controlled on a global level. This also leaves a negative impact on all other businesses which rely on the transportation.
Many employees lost their jobs and many small divisions of automotive industry had to halt their operations. This way, the period of 2008 was a very difficult time because of the oil crisis.
Effective steps to maintain the profits
Fuel efficient vehicles have to be introduced to keep away the negative impacts of oil crisis. Apart from this, electric and solar power automobiles can be introduced to lessen the burden of fuel on the customers. This not only improves the sales and profit margin but also emergence of new ideas is approved by customers.
The future of industry
It is true that companies are developing excellent models of vehicles. Each customer chooses a particular vehicle that is according to his choice and selection of a model. Average customer prefers a simple model that gives good mileage. Others prefer not only rough ride but also want to have computer based system in the car.
This way, as the needs and preferences of a customer grow on a rapid pace, the companies introduce new models. The exchange of technology, development of new technology continues to keep the industry in profits. It is also a matter of appreciation when every customer owns his own car. To this effect, the industry must work and reach profit levels giving absolute satisfaction both to companies and customers.
