Revenue Growth - International and Domestic

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.

Articles mentioned in this post:

http://online.wsj.com/mdc/public/page/2_3022-autosales.html

http://online.wsj.com/article/BT-CO-20110913-713052.html

http://oica.net/category/production-statistics/

http://online.wsj.com/article/SB121726248201090179.html

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Basic Economic Facts About the Auto Industry

The automobile is a primary mode of transportation for many developed economies. About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion US gallons (980,000,000 m³) of gasoline and diesel fuel yearly. What are the main conditions for a well-developed Auto industry? Basic and key reasons for any successful Auto business are:

• Stable business and political environment (NAFTA member)
• Highly developed technical base
• Highly educated workforce, good access to university graduates with technical education
• Strategic position

People use cars daily to get to work, to get children to school, shopping etc. They need cars every day. So how do the Auto companies make money? The primary income of money is in selling their products to people at a reasonable price. The additional incomes can be automotive repairs and maintenance. On the other hand, what are the companys' costs? There are few examples:

• Production costs
• Employee salaries
• Automobile dealers
• Auto parts, accessories, and tire stores
• Promoting the product, such as advertising, billboards

In 2010, the number of cars in operation for the first time exceeded the value of one billion pieces. Magazine WardsAuto registered it. The government through information and historical development trends calculated that currently 1.015 billion cars run the world.

Sources
(1) http://www.hybrid.cz/1-miliarda-tolik-dnes-jezdi-po-svete-aut
(2) http://www.czechinvest.org/en/1automotive-industry
(3) http://en.wikipedia.org/wiki/Automotive_industry
(Image) http://www.fashionera.in/website/fashionera/gift/automobile/automobile%20industry.htm

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