Industry Analysis & Industry Trends
Revenue for the Automobile Manufacturing industry was estimated to total $659.2 billion in 2016, up 6.1% from 2015. Industry revenue has been increasing at an annualized rate of 8.9% during the past five years, driven by rising domestic demand across urban and rural areas and increasing exports.
As household income levels increased in China, and as vehicle prices have remained competitive, more people have been able to purchase their own vehicles, particularly in China's large cities. In addition, a series of favorable government policies have spurred growth, including reduced purchase fees for new cars, subsidies for car-buyers buyers in rural areas and for car owners replacing old cars with new ones.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor (including wages and management fees), about 38 cents are invested in capital in this industry. This reflects the high level of capital tied up in manufacturing equipment.
Large-scale automated production requires significant capital investment. Economies of scale prevail for successful firms in this industry. Most manufacturing processes involve repetitive activities that are automated to increase production speed and cost efficiency.
Significant investment is required to upgrade plant and equipment. Advancements in processes and product development have been an important contributor to improved industry productivity in recent years.
Components are purchased in modular form and are assembled in automated production lines. How.. purchase to read more