Industry Analysis & Industry Trends
Revenue for the Automobile Manufacturing industry was estimated to total $600.4 billion in 2015, up 5.3% from 2014. Industry revenue has been increasing at an annualized rate of 9.9% during the past five years, driven by rising domestic demand across urban and rural areas and increasing exports.
Industry profitability was relatively low in 2008 at 6.2% of revenue, due to weaker local demand, falling prices, rising production costs and increased sales of low-priced and low-profit cars. Since then, however, profit margins have been widening as the industry benefited from booming automobile sales growth. Profit was estimated at 10.8% of revenue in 2015.... purchase to read more
Industry Report - Starting a New Business Chapter
The Automobile Manufacturing Industry in China is characterized by a highly cyclical growth pattern, high fixed costs and break-even points, and a large number of well-established competitors. The cost of developing high volume production facilities, to benefit from economies of scale, is very high.
It is difficult and costly to gain access to the technology of major global operators. The present incumbents include the major global automobile manufacturers that have considerable claims to new and existing technology.
It is difficult to develop and establish a new brand in this industry as competition is intense and it is costly to advertise and promote new products... purchase to read more