The Automotive Industry Has Done A Good Job

1387 Words6 Pages
The automotive industry has become one of the greatest industries today and is one of the world’s most crucial economic sectors by revenue. All the same, not only does automotive industry develops and manufacture but it also markets and sale motor vehicles globally.
Social cultural varies for example population, social duty, ethnic differences, and the influence of consumer mobility affects directly to the automobile industry. Most of the consumer 's concerns are the price, and the brand of the automotive, design and trend, after sales service when purchasing a vehicle and depends on what other another cause for concern is what people think about their vehicle. Age distribution is another important aspect that directly influence
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By investing in Research and development and innovating new technologies help to gain patented and hike up future sales. Technological development is important in helping the driver to control the vehicle with more confidence and ease. Ex: auto parking, navigation system which are standards on some models.
Economic
Over time the prices of automobiles have become on expensive due to the rise in the inflation rate. In terms of infrastructural development in the auto industry is one of most demanding fields of business. One of the major external factors that can affect the price elasticity comes from the oil dependence. Some other factors that cause shifts in supply & price elasticity; are the taxes that the government place on automotive manufacturers. In addition, to the population figures, and the buying potentiality of the consumers. Another aspect that can cause an area of concern is the price of steel. Although a lot of cars produce today are made of fiberglass, steel is still a needed necessary component in the automotive industry.
On the other hand, in an effort to lower the costs outsourcing of materials, components and services would increase and technology advancement gap which could lead to drop the prices. The automotive industry brings significant economic benefits to other countries.
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