The global automobile car manufacturing industry

The global automobile car manufacturing industry is the sector of the global economy, which includes manufacturers, dealers, retailers and equipment manufacturers. [1]

If the global automobile car manufacturing industry is considered in the light of attractiveness for the business- availability of competitors, possibility to develop own network, demand for the products and services of the industry on the current market, it is possible to say that it is a very attractive sector to operate in. That is caused by the modern life, which requires owning vehicle- not for luxury, but as tool for saving time and money and for getting to the destination point as soon as possible. Today more and more people get their driving licences and purchase cars for personal using. That means that every day the number of cars in the world increases and that all these cars need maintenance and reparation and that they need additional details for that purpose.

Current market presents the customers large variety of cars, which may suit all requirements and meet the interests of all social rates. Vehicles are manufactured in different countries and they have got different price, quality and comfort level.

If one decides to purchase the car, the durable period of time is required to make a decision after comparing numerous variants, presented on the market. There can be new cars or second-hand cars; automobiles of local or of foreign production with different technical characteristics and advantages.

In order to evaluate the competition rate in the global automobile car manufacturing industry, which is considered to be one of the most important in the world economy and the one, which is constantly increasing its revenue rate, we would like to make brief analysis of the current situation. First, we would evaluate the leading countries and then - leading brands in manufacturing motor vehicles.

According to the information, presented by the OICA – production statistics, the 2009 year leader in manufacturing cars was China – which has produced 13.790.994 units of cars for that year. The top list includes also Japan (7.934.516 units/year), United States of America (5.711.823 units/year), Germany (5.209.857 units/year), South Korea (3.512.916 units/year) and Brazil (3.182.617 units/year).[2]

If we would take in account the manufacturers, we would see that Toyota is the leader of the industry – for the 2009 it has produced 7.234.439 units/year of cars, light commercial vehicles and heavy commercial vehicles. Also the top list includes such manufacturers as GM (6.459.053 units/year), Volkswagen (6.067.208 units/year), Ford (4.685.394 units/year), Hyundai (4.645.776 units/year) and PSA (3.042.311 units/year).[3]

According to the above listed statistical data, it is possible to make conclusion about the high-rate competition and competitiveness in the industry. That means that if one is willing to participate in the industry as a businessman, he or she should better become the official dealer of world-known company than starting manufacturing own vehicles. Being a dealer has also got its pros and cons. To the positive aspects of such business we would consider the opportunity to use brand with good reputation, vehicles of high quality; to apply the existing trade and maintenance system into the practice in new region and finally that exclude competitors in the same field (we mean that there is only one official dealer of some company in the region). To the negative aspects of being dealer we would consider impossibility of own business ideas application into the practice- there are general rules for official dealers all over the world.

In our research we would examine the world leader- Toyota and identify its key competitors, suppliers, customers, and performance indicators- the key success factors of the Company.

Toyota is one of the global car manufacturing industry leaders. Toyota Motor Co., Ltd. was established in 1937.[4] Toyotas’ main values are high quality rate of products and services and satisfied clients.

According to the company’s philosophy, “Toyota has continuously worked to contribute to the sustainable development of society through provision of innovative and high-quality products and services that lead the times”.[5]

To the main competitors of Toyota[6] it is possible to attribute Ford Motor Company[7], General Motors Company [8]and Honda Motor Co., Ltd. [9]

All three competitors have high rate of sales, they are popular in the whole world and the quality of their vehicles is also high. Ford Motor Company and General Motors Company are the US companies and their cars are more attractive and cheaper for the local consumers and Honda is a Japanese manufacturer – its quality is considered to be higher than Ford or GM, more than that these vehicles use less petrol – that is very actual nowadays in the time of high prices for the petrol or gas.

The main Toyota suppliers are located in the North America. That is caused by the convenient geographical position and it makes positive contribution into the economical situation in that region. Also, the Toyota suppliers are located all over the world in order to make the vehicles’ of the highest quality with the minimal manufacturing costs. [10]

The customers of Toyota are located in all five continents and they have got different income rate. It is possible to own the Toyota both for those, who have average income – there is a family with a basic packaging arrangement and for wealthy people- there is Lexus family- luxury autos with full bundling and additional options available.

To the key success factors of Toyota Company we would outline the following: quality, engineering, and value; their designs set global standards for safety, reliability and ease of maintenance.[11]

Finally we would like to make a conclusion about the competition in the global automobile car manufacturing industry. It is possible to win the competition for those companies that have perfect quality, well-known brand, and maintenance access in all points of our planet. To such companies it is possible to consider Toyota. Its main competitive advantages are constant development of their family, innovations in design and technologies. Constructing completely new models, which use the alternative energy sources, is one more competitive advantage of the Company. The environment protection and social responsibility are dominative factors in the social life aspect.

References:

1. Automotive Industry (2010) Auto Industry. [Online] (Updated 20 October 2010) Available at: http://www.automotive-online.com/auto-industry.html [Accessed 24 October 2010]
2.  Ford Motor Company official web-site (2010). [Online] (Updated 23 October 2010) Available at: http://www.ford.com [Accessed 24 October 2010]
3. General Motors Company official web-site (2010). [Online] (Updated 24 October 2010) Available at: http://www.gm.com [Accessed 24 October 2010]
4. Honda official web-site (2010). [Online] (Updated 24 October 2010) Available at: http://www.honda.com [Accessed 24 October 2010]
5. Hoovers – a D&B Company (2010). Toyota Motor Corporation. [Online] (Updated 20 September 2010) Available at: http://www.hoovers.com/company/Toyota_Motor_Corporation/crxxsi-1.html [Accessed 24 October 2010]
6. International Organization of Motor Vehicle Manufacturers (OCIA) (2010) Production Statistics [Online] (Updated 20 October 2010) Available at: http://oica.net/category/production-statistics/ [Accessed 24 October 2010]
7. International Organization of Motor Vehicle Manufacturers (OCIA) (2010) Ranking 2009.  [Online] (Updated 20 October 2010) Available at: http://oica.net/wp-content/uploads/ranking-2009.pdf [Accessed 24 October 2010]
8. Scribd. (2010). Toyota success recipe. [Online] (Updated 27 August 2010) Available at:  http://www.scribd.com/doc/7146951/Toyota-Success-Recipe [Accessed 24 October 2010].
9. TOYOTA: Company. (2010) History of Toyota. [Online] (Updated 22 September 2010) Available at: http://www2.toyota.co.jp/en/history/index.html [Accessed 24 October 2010].
10. TOYOTA: Company. (2010) Toyota vision. [Online] (Updated 22 September 2010) Available at: http://www2.toyota.co.jp/en/vision/index.html [Accessed 24 October 2010].
11. Toyotasupplier.com (2010) Supplier Diversity at Toyota Motor Engineering & Manufacturing North America Inc. [Online] (Updated 27 August 2010) Available at: http://www.toyotasupplier.com/sup_diversity/sup_diversity.asp [Accessed 24 October 2010].