Automotive Industry: Industry Sectors

Pillars of the Automotive Industry:

The automotive industry can be divided into three business sectors that form the pillars of the industry. The three business sectors are:

Car and Automobile Manufacturers:

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.

Industry Products:

• Cars
• Pickup trucks and SUVs
• Vans
• Trucks
• Transit Buses
• School Buses
• Military Vehicles

Industry Activities:

• Manufacturing passenger cars, light trucks, sport utility vehicles and vans
• Manufacturing chassis for passenger cars, light and utility trucks, and vans
• Manufacturing electric automobiles for highway use
• Hearses assembling on chassis of own

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Auto Parts and Accessories Manufacturers:

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.

Industry Products:

• Electrical and electronic components
• Steering and suspension
• Brake systems
• Transmission and power train
• Seating and interior trim
• Metal stamping
• Air conditioning, airbag, wheel, and all other parts

Industry Activities:

• Motor vehicle electrical and electronic part
• Motor vehicle steering and suspension part
• Motor vehicle brake system
• Motor vehicle transmission and power train part
• Motor vehicle seating and interior trim part
• Motor vehicle part metal stamping

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Car & Automobile Sales / Auto Dealerships:

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.

Industry Products:

• Cars
• Sports utility vehicles and pickup trucks
• Light commercial vehicles
• Heavy trucks
• Buses
• Recreational vehicles
• Specialty vehicles

Industry Activities:

• Sales and service of cars and light trucks
• Sales and service of heavy trucks
• Sales and service of specialty vehicles
• Sales and service of buses
• Sales and service of vans and other commercial vehicles
• Sales and service of recreational vehicles