The auto industry, like all industries, is being changed massively by technology and trends like globalization. Emerging international markets, especially, are changing where and how revenue is growing for this industry. The US car market is changing as well due to changes in complimentary goods (primarily oil), different needs, and (to an extent) different tastes.
International Auto Markets
The international auto markets are growing rapidly. US automakers and international automakers alike are expanding (or attempting to expand) into these markets. Automakers local to these emerging markets are also growing. The auto industry in some markets has grown more then 90% in recent years, compared to US growth which has remained stable or even shrunk in recent years.
Domestic Auto Industry Trends
The “green” trend has affected the Auto industry just as it has affected other industries, be it the trend to save money in hard financial times or to save our natural environment. The US trend in recent years has been towards smaller cars. Companies that can change with this trend are finding success while companies that could not have seen far less revenue growth in recent years. As these companies change to keep up with the cars consumers are buying, their revenue is beginning to grow as well.
International Auto Markets
The international auto markets are growing rapidly. US automakers and international automakers alike are expanding (or attempting to expand) into these markets. Automakers local to these emerging markets are also growing. The auto industry in some markets has grown more then 90% in recent years, compared to US growth which has remained stable or even shrunk in recent years.
Domestic Auto Industry Trends
The “green” trend has affected the Auto industry just as it has affected other industries, be it the trend to save money in hard financial times or to save our natural environment. The US trend in recent years has been towards smaller cars. Companies that can change with this trend are finding success while companies that could not have seen far less revenue growth in recent years. As these companies change to keep up with the cars consumers are buying, their revenue is beginning to grow as well.
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2 comments:
Great points Dan! Your post shows how traditional methods of raising revenue in an industry do not last long. You brought up a great point in the 'Domestic Auto Trends' with cars going green. GM for example kept producing huge SUVs, meanwhile Toyota & Honda among others were developing cars that were more environmentally friendly. All of a sudden GM was stuck not increasing its revenue because it wasn't paying attention to what its customers wanted.
Thanks! Yes, it is very important to follow what the customers want in the auto industry and in others. It's showed in recent years.
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