The Automotive Industry: Significance & Impact
Image source: TOC Automotive College
The Automotive Industry has shaped the global economy throughout the years and its importance will not cease in years to come. The industry has benefited many other industries out there such as rubber and part makers. This leads to economic growth and further R&D (Research and development) for technology innovation.
The automotive sector alone contributes a fair share of tax revenues from vehicle sales, personal income taxes and business taxes. This is especially true in Malaysia. When PROTON was introduced, there is a substantial growth to the government bursary on direct and indirect taxes.
According to the site www.atkearney.com, every job in the core auto industry leads to more than four additional jobs in upstream or downstream industries. Automotive is a training ground for developing technical and managerial expertise valuable in many industries. Today, the industry has become very competitive in Asia. Asia has been recognized as a potential growth area for the automotive industry.
One very important contribution from the auto industry is mobility. Without the rise and creation of vehicles, it is nearly impossible to travel around. The concept of mobility made life easier to travel across borders. That being said, mobility has also made businesses to what it is today. The automotive industry is also key to manufacturing technology due to its fast-paced nature.
When it comes to purchasing a car today, customers are now well-educated and knowledgeable when it comes to decision making. Therefore, the industry needs to step up their game and alter their strategies in marketing and advertising. It is vital for a car maker to strengthen their brand image with a USP (Unique Selling Proposition) in order to satisfy customers’ demands. To top it off, after-sales service is also extremely important to keep a customer happy. Social Media plays an important role in today’s businesses. Once a complaint is lodged on social media, chances are, it will go viral. That alone, gives doubt and negative perception to potential buyers.
The automotive industry has gone through many phases throughout the years. According to the site https://pubs.acs.org/, globalization of the industry is being realized through business alliances and industry-academic-government partnerships that have realigned the world’s vehicle manufacturers into six major groups. With these developments, the industry is on the verge of major change, in both its products and business structure.
In 1916, the use of “Credit” is stimulated by the automotive industry. Yes, instalment buying existed before the bloom of automotive industry but only for a limited range of products. However, instalment has become a universal practice in all countries when it comes to purchasing a vehicle.
All in all, the automotive industry sees a great potential and growth from time to time and is considered the epitome of a global industry.