Economic Characteristics Of The Global Motor Vehicle Industry

1019 Words Oct 3rd, 2016 5 Pages
Describe the economic characteristics of the global motor vehicle industry.
In the last several years in the global motor vehicle industry, the focus has changed. With fuel prices increasing the focus shifted to vehicles becoming more fuel efficient. Several automakers switched gears and looked into hybrids and/or diesel fuel vehicles to appeal to the change in the market. More consumers were become more eco-friendly. However, not all auto manufactures shifted gears. Some stayed on their course and continued to make vehicles that didn’t go with the eco-friendly plan. Those who didn’t change had hope there would be a positive change in the fuel prices. The financial crisis in 2008 had a major impact on the automotive industry. During this time some companies took advantage of the economic recession and became even more innovative to keep profits flowing. Tata motors being one of them and introducing the Tata Nano, the world’s most affordable car.
What are the key success factors for a successful firm in the global motor vehicle industry?
Being innovative is a key factor for success in the motor vehicle industry. Tata motors did very well in that department. They introduced the world’s most affordable car during the hardest time the world faced economically. Another key success factor is networking is collaboration. Tata Motors have collaborated with some big players in the industry such as Benz and Chrysler. Collaboration also can go hand and hand with growing markets…

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