In this article, we will discuss the business sectors of the automotive industry. We will understand the major sectors in the automotive industry and the role they play and their impact on the industry. The major business sectors of the automotive industry are suppliers, auto-manufacturers, and auto dealerships.
The automotive industry can be divided into three business sectors that form the pillars of the industry. The three business sectors are:
Companies in this industry manufacture chassis for automobiles and light-duty motor vehicles and assemble final automobiles and light-duty motor vehicles. These vehicles include passenger cars, pickup trucks, sports utility vehicles (SUVs), crossover utility vehicles, people movers, and vans. Many parts are acquired from many different suppliers and finally assembled by the Auto Manufacturer. They use these parts to build vehicles and the assembled vehicle is sold under their brand names. Auto manufacturers produce and sell light-duty vehicles, such as passenger cars, vans, and pickup trucks. They also sell heavy-duty vehicles, such as trucks, transit buses, school buses, and military vehicles.
Companies in this industry manufacture motor vehicle parts and accessories other than engines, engine parts, batteries, tires, bodies, and chassis. Motor vehicle assembling is not included in this industry. Manufacturers typically supply parts and accessories to original equipment manufacturers (OEM) for use in the manufacturing of complete motor vehicles or for replacement parts in OEM dealerships. They also supply parts to the aftermarket.
Suppliers form part of a highly complex supply chain that transforms raw materials and components into ready-made auto parts that are then delivered to auto manufacturers. The supplier business sector also includes aftermarket parts, replacement parts, and rubber fabrication companies.
This industry is involved in the retailing of new and used motor vehicles mainly through dealerships, commission agents, and car auctions. Products sold in this industry include passenger cars, SUVs and light trucks, heavy trucks, buses, recreational vehicles, and specialty vehicles such as ambulances and fire trucks. Retail sales of motorcycles, mopeds, and bicycles are not included in this industry.
Auto dealerships distribute the finished vehicles to the customers. They trade in new vehicles and there also exists a huge demand and market for used vehicles. These dealerships can deal in either new or used or both. Generally, dealerships also provide additional services for vehicle owners, such as vehicle maintenance services and replacement parts. Some dealerships also arrange financing options for vehicle buyers.
Supply & Value Chain | Industry Sectors | The Competitive Landscape |
Industry Drivers | History of Automotive Industry | Overview of Automotive Industry |
Automotive Industry Supply & Value Chain
Most of the automotive manufacturers employ a business model that demands collaboration between different assemblers and cadre of parts suppliers with a lean, flexible, just-in-time (JIT) assembly process. In this article, we will discuss the business model of a typical automotive manufacturer and the various stages from planning to final retailing of the product.
Overview of Automotive Industry
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History of Automotive Industry
The study of the automotive industry is inherently interesting: it is massive, it is competitive, and it is just a few years older than a century. It is expected to undergo major changes in recent times due to the impact of globalization, increased regulations because of environmental concerns, and rising fossil fuel prices due to decreasing oil reserves.
Automotive Industry: The Key Industry Drivers
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Automotive Industry: The Competitive Landscape
In this article, we will discuss the top key competitors in the automotive industry. This will help you gain an understanding of the major players in the automotive industry. We will start with a brief history of the major players, their competitive advantage, and financial profiles in this section.
Automotive Industry: Industry Sectors
In this article, we will discuss the business sectors of the automotive industry. We will understand the major sectors in the automotive industry and the role they play and their impact on the industry. The major business sectors of the automotive industry are suppliers, auto-manufacturers, and auto dealerships.
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