It’s obvious to everyone who has at least some minimum insight into the auto industry, that it’s constantly going through changes, looking to keep up with changing consumers’ demands, trying to reinvent itself by embracing new technologies and new marketing strategies. The auto industry has gone through a lot of turmoil over the decades, having to endure some of toughest economic crises of the 20th century, as well the latest financial crisis that hit almost every other industry. So, the last couple of years have been extremely tough on the auto industry, with worldwide sales constantly dropping, trying to adjust to the new economic climate, with consumers that have significantly lower purchasing power.
One of the greatest reasons for the change in direction of the auto industry is the globalization, which has been in full swing for a couple decades now. That’s why most car makers have been forced to try and find new markets to push their products in, and change and adjust their vehicles accordingly. So, all the large car manufacturers have been recently focusing on emerging markets, such as China, as the world’s biggest emerging market, along with Brazil and India. With the way the Chinese economy has been growing for quite some time, a lot of new vehicles have been coming into China, ready to be bought by millions and millions of people that have recently become incredibly wealthy.
But, apart from importing millions of vehicles from America, Europe and Japan, the Chinese have started making some huge investments in their own auto industry, as well, in efforts to take advantage of the increased demand for new vehicles in their country, but with increased appetites to conquer foreign markets, as well. As a result, a couple of Chinese car making companies, such as Great Wall Motor, have been able to get to some pretty good sales numbers in the last 2-3 years, both in China and abroad, mostly in markets that still haven’t been tapped by large Japanese or European companies.
Another important thing that has changed in the automotive industry is the type of vehicles that are being produced now. Considering the growing concerns over the environment and the huge negative impact cars have on it, focus has been turned towards making more environmentally-friendly vehicles. So, instead of continuing production of those gasoline-powered cars that leave great amounts of carbon footprint and are a huge contributing factor to air pollution, most car makers are now making efforts to construct greener vehicles that are more eco-friendly. Japanese companies are leading the way in this segment, with some of the best, most eco-friendly vehicles coming from manufacturers such as Toyota and Honda. Additionally, as gas prices constantly go higher and higher for years, more fuel efficient cars are in huge demand. So, consumers can now choose from a wide array or fuel efficient, environmentally-friendly vehicles, something that they weren’t able to do up until recently. With all this in mind, this should be the direction the global auto industry is going to move for years to come.
Author: Jordan Perch – Follow him on Google+.