Introduction to the automobile industry
Definition
The automobile industry consists of a wide range of companies and organizations involved in the designing and developing, of motor vehicles. It is considered as one of the world 's most important economic sectors in terms of revenue.
History of the automobile industry
The automobile industry, s inception began in the early 1890s with thousands of manufacturers that were the pioneers of the horseless carriage. For many years, the United States of America were the leaders of the world when it came to automobile production. In the year 1929, just before the Great Depression, the world had roughly 32,028,400 automobiles in use, and the United States of America automobile industry produced in the
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The automobile industry of India accounts for upto 21.8 per cent of the country 's manufacturing gross domestic product (GDP).
An ever expanding middle class, a very young population, and an ever increasing interest of the automobile companies in exploring the rural markets have made the two wheeler segment (with nearly 80 per cent market share) the leader of the automobile market in India. In India the overall passenger vehicle segment has 13.8 per cent market share.
In the 21st century India has also become a substantial auto exporter, with very good export growth expectations for the coming future. Various initiatives taken by the Government of India and the major automobile players in the Indian market are expected to make India a leader not only in the Two Wheeler market but also in the Four Wheeler market in the world by 2020.
Market Size
In India Sales of commercial vehicles grew at 5.4 per cent to 52,481 units in the month of January 2015 from a year ago, according to the Society of Indian Automobile Manufacturers
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In the year of March 2014 the multinational corporation consisted of about 338,874 employees around the world and as of November of 2014, it is considered to be the twelfth-largest company in the world by revenue. Toyota was the largest automobile manufacturer uptill 2012 in terms of production ahead of Volkswagen Group and General Motors. In July of the year 2012, the company posted the production of its 200-millionth vehicle. Toyota is considered as the world’s first automobile manufacturer to produce more than 10 million vehicles per year. This feat was achieved in the year 2012 according to OICA, and also in 2013 according to the data of Toyota. As of the year 2014, Toyota was the largest listed company in Japan in terms of market capitalization worth more than twice as much as the number 2 ranked company.
The company was founded by Kiichiro Toyoda in the year of 1937 as a spinoff from his father 's company Toyota Industries to create the company Toyota automobiles. Three years earlier, in the year 1934, while still a part of Toyota Industries, it created its first product namely the Type A engine, and, in the year 1936, it created its first passenger car which is the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands which includes the Toyota brand, Hino, Lexus, Ranz, and
As a result, many American citizens started purchasing automobiles which allowed cities to grow and expand. This allowed for factories to begin manufacturing automobiles which created jobs and brought major
There were many noticeable components that contributed to the advancement and growth of the United States such as: industrialization, the Great Depression, and war. Of the many occurrences, technology had the single greatest impact on the continued evolution of the United States. The new inventions, new discoveries, and new innovation led to greater economic growth and wealth that the American people experienced during 1920-1940. One invention that influenced and continues to impact American lives is the automobile. Kyvig (2002) has argued that automobile ownership tripled during the 1920s, and by the end of the decade four families out of five owned an automobile.
The automobile drove the economy. The automobile became one of the most important industries of the nation. The automobile helped stimulate steel, rubber, glass, tool companies, oil corporations, and road construction. The automobile created drive-in movies and drive-in restaurants. People were also creating new consumer goods.
The increasing popularity of the automobile changed the social and economic future of America by giving them a means a new affordable form of transportation. Ford had revolutionized the automobile industry in 19th century with his incorporation of the assembly line, putting a $490 price tag on his Model T in 1914. By the twenties, over 8 million people
Henry Ford was the man who fused automobiles and the assembly line into the perfect mix allowing for faster production and better quality (“Henry Ford: Technology and Innovation in the 1920s | College Reading and Writing”). Another economic change was the great depression which affected america negativly. The great depression was a downturn in mondern economy. The great depression started on the stock market crash of October 1929 when the dow jones industrial average declined nearly thirteen percent (Richardson et al.).
Due to the existence of the automobile, the United States economy was changed forever. Originally, cars were hand made and only purchased by rich men due to their price. Due to Henry Ford, automobiles were eventually made available to the masses due to the fact that he concocted a way to produce the machine cheaper. This method was the assembly line, which impacted the amount of jobs available and the increased need of highways. The Geography of Nowhere, written by James Kunstler, discusses how the automobiles transformed America’s economy.
Automobiles were affordable and were designed carefully. The majority of these cars were produced by the Ford Motor Company, led by Henry Ford, who designed a different model each year to satisfy the insatiable crowd. Many of the automotive innovations that we think of as being modern—like electric powered cars, four wheel drive, front wheel drive, hybrid fuel and electric cars—were introduced during the 1920s. The automobiles had various different colors in order to get the attention of people, especially woman, and through time, they evolved to become more comfortable to drive for men (Scott ,1). The automobiles were beneficial to the U.S because they expanded the area of habitat.
In this time it was known as the Gilded Age of American Autos. After cars became more popular as people saw them. The manufactures started to grow in numbers. During this Era there were more and more automobile companies popping up all around the United States. There were three major manufactures that still hear about and still have
1. In what ways did the increasing popularity of the automobile contribute to economic growth and social change in the United States during the 1920s? In the 1920’s the popularity of automobile increased the growth of economy when Henry Ford decided to sell his vehicles for a lower price, allowing more people to be able to buy cars.
The Rise of the Automobile in 1920s in The Great Gatsby Perhaps no invention affected American everyday life in the 20th century more than the automobile. The invention and improvement of the automobile not only changed the America society, but also the whole world. The rapidly growing automobile industry led by Henry Ford and the Ford Motor Company produced new and better models every year to supply the insatiable public demand. Increased wages and lower cost vehicles made possible through mass production meant that cars became increasingly affordable, although 3 out of 4 cars were bought on installment plans.
Toyota Motor Corporation is a car organization working Worldwide (Multinational) with base camp in Japan, with US as the biggest business sector for
INTRODUCTION: Mercedes Benz is a globally known brand, originated in Germany. Benz is specialized in automobiles like cars, buses, trucks, etc. EXTERNAL BUSINESS ENVIONMENT: The automobile industry is a multi-billion industry with large brands in market. It’s important to carry out analysis on microenvironment before formulating strategies.
The Automobile business is a blend of organizations and companies engaged with the plan, advancement, assembling, promoting, and offering of vehicles. External environment is outside influences which has an effect on the industry. The environment factors help the industry to go through vast changes. Emergence of new competition have huge impact on vehicle development and design. Advancement of technology has helped the industry to use more high-tech driving capabilities.
The Business Level of Toyota Toyota Motor Corporation is a Japanese company that is involved in the design, assembly, manufacture and sale of a wide range of motor vehicles such as minivans, passenger cars, commercial vehicles, and assorted accessories and parts (Nkomo, 3). Examples of brands under the Toyota portfolio include, but are not limited to; Lexus, Toyota, Hino and Daihatsu. Toyota was founded in 1937 by Kiichiro Toyoda and has grown to not only be the world’s leading auto manufacturer in the automotive industry, but also the world’s eighth largest company with operations in virtually every corner of the world (Nkomo, 3). This growth has been fueled by two key aspects of Toyota’s business; its ability to lower costs and concise
The company exports its vehicles to over 120 countries across the globe. The company aims at providing the best technology and performance driven cars to the Indian middle class segment at an affording prize. The company also commits to safety to provide safer ride on the Indian roads. The company has a Workforce of 12,500 employees and a service network