Increasing global trade has enabled the growth in world commercial distribution systems, which has also expanded global competition amongst the automobile manufacturers. Japanese automakers in particular, have instituted innovative production methods by modifying the U.S. manufacturing model, as well as adapting and utilizing technology to enhance production and increase product competition.
There are a number of trends that can be identified by examining the global automotive market, which can be divided into the following factors:4
Global Market Dynamics – The world’s largest automobile manufacturers continue to invest into production facilities in emerging markets in order to reduce production costs. These emerging markets include Latin America, China, Malaysia and other markets in Southeast Asia.
U.S. automakers, “The Big Three” (GM, Ford and Chrysler) have merged with, and in some cases established commercial strategic partnerships with other European and Japanese automobile manufacturers. Overall, there has been a trend by the world automakers to expand in overseas markets.
Industry Consolidation – Increasing global competition amongst the global manufacturers and positioning within foreign markets has divided the world’s automakers into three tiers, the first tier being GM, Ford, Toyota, Honda and Volkswagen, and the two remaining tier manufacturers attempting to consolidate or merge with other lower tier automakers to compete with the first tier companies.
1st Tier Company Mergers – Volkswagen-Lamborgini; BMW-Rolls Royce
2nd Tier Company Mergers – Chrysler-Mercedes Benz; Renault-Nissan-Fiat
3rd Tier Company Mergers – Mazda-Mitsubishi; Kia-Volvo
This section presents literature that examines three major automotive markets in North America, Europe and East Asia. This material is intended to provide a thorough examination of industry trends, structure, and the effects of global market dynamics of the automotive industry within each region, as well as their interrelationships, followed by literature researching the East Asian automotive market.
Back to Top
Research on the Global Automobile Industry
The Beyond BRIC Auto Markets: A Close Look at Four Clusters: An In-Depth Look at the Challenges and Opportunities. Boston Consulting Group, October 22, 2013.
The full report is only available to subscribers but this is looking at BRIC countries – Brazil, Russia, India and China.
Fitch Solutions (formerly BMI) produces industry reports by country available for purchase online.
Global Auto Report Scotia Bank, March 13, 2017.
http://www.gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/GAR_2017-03-13.pdf [PDF format: 287 KB/9 p.]
Brief overview of the automotive industry worldwide.
Hashmi, Aamir Rafique and Johannes Van Biesebroeck. Market Structure and Innovation [electronic resource] : a dynamic analysis of the global automobile industry. Cambridge, MA : National Bureau of Economic Research, c2010.
LC Catalog Record: 2010655999
Full text on NBER web site
This is a study of the relationship between market structure and innovation in the global automobile industry from 1982 to 2004.
Hiraoka, Leslie. S. Global Alliances in the Motor Vehicle Industry. Westport, CT: Quorum Books, 2001.
LC Call Number: HD9710.A2 H57 2001
LC Catalog Record: 00037269
This study examines the origins, consequences, and trends of globalization in the motor vehicle industry, with chapters on transplants from Japan, US recovery, the DaimlerChrysler merger NAFTA,
How to evaluate top transportation stocks
You’ll see some commonalities if you invest in transportation stocks. To assess how these companies will fare, keep the following in mind.
Transportation companies use a lot of energy to get things where they need to go. They’re therefore sensitive to crude oil prices and fuel costs. Whether they use jet fuel for planes, diesel for trucks and trains, or a combination of electricity and natural gas to run updated equipment, the best transportation companies seek to be as fuel-efficient as they can be.
It’s expensive for transportation companies to buy the equipment they need. Financing purchases through long-term debt can be smart, but the best companies keep their debt levels from getting unsustainably high.
When the economy is strong, transportation companies tend to do well, because plenty of people and businesses want to ship things. But shipping demand can fall dramatically during tough economic times. Investors have to get used to the ups and downs of the transportation industry in response to changing conditions in the global economy.
It’s common for several companies to fight for the same group of customers. For instance, even just in the U.S., you’ll find carriers like American Airlines Group (NASDAQ:AAL), Southwest Airlines (NYSE:LUV), and JetBlue (NASDAQ:JBLU) fighting against Delta and their other peers. With airlines, comparing how full each company’s planes are and whether they’re making profits can tell you a lot about which players are strong and which are weak. Similar looks at key metrics like capacity and profitability in other parts of the transportation sector can be equally valuable in assessing whether one stock is better than another.
Published Date: Oct 2019 | Report ID: GMI1166 | Authors: Kiran Pulidindi, Hemant Pandey
Automotive Aftermarket size valued at USD 923.1 billion in 2018 and will grow at a CAGR of 5.5% from 2019 to 2026.
Get more details on this report – Request Free Sample PDF
Automotive aftermarket, frequently referred to as secondary market, manufactures and supplies spare parts, accessories and other components for various automobiles. Aftermarket industry provides services such as repair and maintenance for the vehicles. It is highly consumer driven and undergoing changes with evolving consumer expectations, technological advancement and changing dynamics. Shifts in competitive power in emerging economies contribute to transforming the industry landscape periodically. New technology in terms of innovative components and logistics are set to reduce gap between OEM and aftermarket offerings.
Surging pre-owned vehicle sales in turn help propel the repair and maintenance side of the automotive market, for improved vehicle performance. Growing middle class population in conjunction with increasing purchasing power is driving the vehicle sales and providing potential opportunities for aftermarket part manufacturers and supply chain providers. Ageing vehicle fleet, along with growing demand for replacement parts will further escalate the revenue generation in next few years.
Usage of sensor technology in vehicles provides optimum driving behavior that leads to less wear and tear of vehicle parts including brakes and tires. This reduces the replacement requirement that may hamper the automotive aftermarket industry growth. Ongoing R&D for new materials to decrease the deterioration wear and tear of vehicle parts that limit the product penetration. For instance, in March 2019, UBC Okanagan, University of Toronto and Sharif University of Technology developed self-lubricant brakes for cars. The carbon fiber-infused polymer-based brake are expected to provide high performance over wide range of temperatures with smaller brake pads and higher performance life.
|Base Year:||2018||Market Size in 2018:||923.1 Billion (USD)|
|Historical Data for:||2016 to 2018||Forecast Period:||2019 to 2026|
|Forecast Period 2019 to 2026 CAGR:||5.5%||2026 Value Projection:||1,430.5 Billion (USD)|
|Pages:||254||Tables, Charts & Figures:||278|
|Geographies covered (18):||U.S., Canada, Germany, UK, Russia, Poland, France, China, India, South Korea, Japan, Indonesia, Thailand, Brazil, Mexico, Argentina, South Africa, Saudi Arabia|
|Segments covered:||Product, Sales Outlet, Region|
|Companies covered (25):||Lear Corporation, BASF SE, YAZAKI Corporation, Cooper Tire & Rubber Company, ALCO Filters Ltd, Continental AG, Bridgestone Corporation, Delphi automotive PLC, Denso Corporation, Hella KGaA Hueck & Co, 3M, Akebono Brake Corporation, Federal-Mogul Holdings LLC, Shandong Zhengnuo Group Co., Ltd, ASIMCO, ACDelco, Faurecia USA Holdings, Inc, Magnetic Marelli, Robert Bosch GmbH, Aisin Seiki, Hyundai Mobis Co., Ltd, Johnson Controls, Toyota Motor Corporation, ZF FRIEDRICHSHAFEN AG, Magna International, Inc.|
|Pitfalls & Challenges:||
Request 15% Free
Sign Up for a Job Alert
Find Automotive Jobs
AUTO PARTS STORE
Auto Body Repair
Auto Employment & Careers
Auto Paint Thickness Meters