Automobile Industry Business Opportunities in 2024

by AriyaBiz · Published March 21, 2023 · Updated May 1, 2024

Automaobile Industry Business Opportunities

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Welcome Reader and Entrepreneurs in the Blog Post of ‘Automobile Industry Business Opportunities in 2024!’ In this Blog post we are going to explore Automobile Sector, Automobile industry segments, History of Automotive industry, Automotive Industry Global Outlook, Affect of Automobile industry on our Society, Impacts of Automobile industry on other Domains of society, Measures taken to minimize side effect of Automobile industry, Future of the automotive industry and the Opportunities in Automobile Industry. Don’t miss any content of this blog series.

What is Automobile Sector

People have developed the habit of traveling long distances, whether for leisure or for work purposes, and this is the reason for the growth of the automotive industry worldwide. For generations, the auto industry has provided drivers with excellent coverage and service. Let’s embark on a remarkable journey today that is automobile sector.

The term “automotive industry” refers to all businesses and endeavors concerned with the production of motor vehicles, including the majority of their parts, such as bodies and engines, but excluding tires, batteries, and fuel.

Automobile industry segments

Vehicle types in the automotive industry include two-wheelers, passenger cars, three-wheelers, and commercial vehicles. Although crucial to the industry, commercial vehicles like delivery trucks and large transport trucks.

History of Automotive industry

Karl Benz German engineer invented the first gasoline-run automobile in the 1985/86. But, it was Henry Ford who revolutionized the automobile industry in US. He made them accessible to everyone. First model T was sale in 1914 to $490. From start of 20^th century British, Italian, and American manufactured entered in competition with German and French manufacturers.

The automobile was invented in Europe in the late 19th century, but for the first half of the 20th century, the United States completely takes controlled the global Automobile industry. The United States was the natural birthplace of the automotive technology, which had been partially explored in the 19th century, due to its large population, high standard of living, and long distances. US dominated the world automobile industry through the Invention of mass production techniques of vehicles.

Western European Countries with Japan comes in market as major manufactures and global exporter in Automobile Sector till second half of 20the century.

Although Europe had contributed to the experimentation, the American role was highlighted in the term “the American system of manufacture” that was commonly used to describe standardization and interchangeability. With the Model T, Ford was the titan, controlling the automotive industry not just in the US but also internationally through branch plants. The largest individual producer in the UK was British Ford.

GM in the US, General Motors Corporation was beginning to pose a serious threat. At that time, there were no other comparable-sized automotive companies. William C. Durant, a Flint, Michigan-based carriage manufacturer who later founded General Motors Corporation (GM), the world’s largest automotive company and largest privately-owned manufacturing enterprise, founded the company in 1908.

Automotive Industry Global Outlook

US

The automobile industry is very large today. In terms of total product value, manufacturing value added, and the number of wage earners employed, it is the largest single manufacturing sector in the United States. More than one-fifth of the country’s wholesale trade and more than one fourth of its retail trade are accounted for by the sales and receipts of automotive firms, which account for one in every six of all American businesses.

Japan

Japan experienced the most impressive growth in automotive production following World War II. From a negligible position in 1950, Japan rose to become the world’s top automotive producer in 30 years, surpassing West Germany, France, Great Britain, and the United States.

South Korea

The automotive sector in South Korea saw significant growth in the 1970s. About 90% of the South Korean market was accounted for by three major firms—Hyundai Motor Company, Kia Motors Corporation, and Daewoo Motor Corporation—with the remaining 10% being divided between two auxiliary producers and imports.

China

China’s automotive sector was enters in European markets with increase their capacities with an average utilization rate of only about 60 percent and. In 2010 Zhejiang Geely Holding Group had take a charge of the Swedish carmaker Volvo. Geely also owns the British sports car maker Lotus and the company that makes London taxi cabs, while its chairman, Li Shufu, owns about 10 percent of Daimler, the maker of Mercedes-Benz cars.

Historically, developed nations with the purchasing power to generate an automobile demand, such as those in North America and Europe, as well as Australia, New Zealand, South Africa, and Japan, have shown to be the most promising markets for motor vehicles. With millions of vehicles sold, China is already the largest automobile market in the world. But the growth of new car sales is slowing. Large operations are run in China by BMW, Volkswagen, and Daimler, which owns Mercedes-Benz.

Automotive industry in India

Indian Automotive India is operating at top speed. By 2026, India is anticipated to have the third-largest automotive market in the world in terms of volume. Being the largest tractor manufacturer, India holds a dominant position in the production of international heavy vehicles and two-wheelers.

The five auto hubs in India, which are expanding quickly, have a lot of potential as bases for export to the Middle East and North Africa (MENA) and South East Asia (SEA) regions. Now consider how the automobile affects the economy.

In nations with significant automobile manufacturers, such as Germany and the United States, the slow-motion expansion of the automotive industry fuels an economic revolution. The expansion of other industries like vulcanized rubber, oil, and steel was facilitated by the booming motor vehicle sector. Thousands of new jobs were created during the construction of numerous new highways.

Affect of Automobile industry on our Society

Now, let’s talk about how cars affect our society. Major social changes were brought about by automobiles. It was previously impossible for people to travel by car to their favorite family vacation destinations. Streetcars, horses, and horse-drawn carriages were compelled to leave the streets by these new modes of transportation.

At the start of the 1940s, diesel-powered buses and cars started to rule American urban streets. Light rails were also negatively impacted, but they later recovered as rapid transit. The suburbs prospered in part due to the accessibility of automobiles. The Baby Boomer generation was born in single-income suburban families. Moving between urban and suburban areas also got a lot simpler.

Impacts of Automobile industry on other Domains of society

The effects of the automobile extended beyond just the economic and social spheres. It is now an essential component of movies, music, and books in popular culture. In fact, driving has become a way of life, and status symbols include cars. Two of the most well-liked pastimes involve people collecting cars, particularly vintage ones, and modifying them to improve their appearance or performance. Millions of people are also referred to as “car enthusiasts” because of their intense interest in everything associated with motor vehicles.

Highway accidents, air pollution, and traffic congestion are all on the rise. The approach taken to solving each of these issues demonstrates a widespread propensity to place the blame on the technology rather than the usage of the technology. The search for a reliable method of future prediction has never stopped.

Measures taken to minimize side effect of Automobile industry

The direction for electrifying all automotive products worldwide with the competition from electric vehicles is threatening the internal combustion engine. To achieve a society free of carbon emissions, the world automobile organization set the target of electrifying two-thirds of all vehicles worldwide.

Future of the Automotive Industry

Future of the Automotive Industry is mainly of electrified vehicles with better performance of fuel with zero emissions. Electrify products mainly with hybrid technologies that are 2-motor hybrid system or more compact 2-motor hybrid system suitable for small-sized vehicles. US adopts Zero Emission Vehicle (ZEV) program and China declare New Energy Vehicle (NEV) mandate in this scenario.

India has mandated that starting on April 1, 2020. All automakers, including those of two- and four-wheeled vehicles, must only produce, market, and register BS6 (BSVI) vehicles.

The vehicles we drive and the fuel we use must be transformed away from petroleum in order to meet health-based air quality standards and reduce greenhouse gas emissions goals. In the end, electric vehicles might be the solution, but the change won’t come quickly or soon.

To accelerate the electrification process, highly competitive battery EV models may be developed. To promote xEVs (hybrid and electric vehicles) those are dependable, affordable, and efficient and meet consumer expectations for price and performance.

The automotive industry’s growth is still changing. Small vehicles have a lot of potential in developing markets. Smaller vehicles like subcompacts, micro cars, and super minis present a significant growth opportunity. More than 60% of this market is found in emerging economies, and the majority of this growth will occur in urban areas. Just as smart phones became more intelligent, so will automobiles also. Though they won’t really be thinking, they will still react and remind us how to drive. Increasingly active safety features are being added to cars on the road, along with danger-warning applications, traffic information services, and a variety of infotainment features.

The number of networked cars will rise 30 percent a year for the next several years; one in five cars will be connected to the Internet. Think of real intelligent cars. That vision isn’t far away.

Important of safety

Vehicles will become auto–mobiles in the literal sense of the word. At first, there is important of super safety and we know how to sell it. ABS, ESP, Airbags one two three four five, you name it. Technology takes over where human beings fail. This story of safety needs to be filled with new ideas.

Digitalization brings big change to automotive industry

If we add artificial intelligence into the mix, we might make yet another SciFi vision comes true in the future.

Economic crises affect automotive industries

Economic crises always affect on automotive industries. Due to global Economic crises Temporary workers removal increase. A lack of working capital demand has led to closure of nearly 300 dealerships across the world. This has led to over millions people losing their jobs. In the United Kingdom, Ford closed six plants of engine factory Europe with cut off nearby 12,000 jobs. In India by Tata Motors (TTM) with their products Jaguar Land Rover had cutoff nearby 4,500 jobs. Honda in UK also winds up their plants. Fortunately globally, the automotive industry has recovered from the economic crisis.

Opportunities in Automobile Industry

There are opportunities in motel and fast food industries, the two main factors that have increased spending power and the number of vehicles on the road are what have given small business owners opportunities in the new side sector of automobile industry. The motel and fast food industries both got their start as a result of this bad habit.

Engine & engine parts, turbochargers, Transmission & steering parts, Clutches

Suspension & breaking parts, Equipment, metal parts, Hybrid & electric vehicles components, are the manufacturing opportunities waiting for you.

Top automobile companies in the world

The top automobile companies in the world constitute for more than three-fifths of the global automobile market.

Toyota Motor Corporation (Japan), Volkswagen Group (Germany), Daimler AG (Germany), BMW (Germany), Honda (Japan), General Motors (USA), Tesla Inc.,Ford (USA), Nissan (Japan), Fiat Chrysler (Italy), Suzuki (Japan), Piaggio (Italy), Hyundai (South Korea), Mercedes (Germany).

Conclusion

Automotive industry means, “Driving at night is about communicating with lights.” It is said to be that nobody travels on the road to success without a puncture or two. Automobile Business Ideas for Small Entrepreneurs in the automobile Industry are always in demand but all he needed was a wheel in his hand and four on the road. Automotive industry always has to dream it and drive it. Keep Reading! Thank you.

Automobile Industry Business Opportunities in 2024

What is Automobile Sector

Automobile industry segments

History of Automotive industry

Automotive Industry Global Outlook