The global automotive industry is developing with increasing demand for new vehicles. Automotive parts are either Original Equipment or aftermarket parts. From last few years there was fluctuation in the growth of automotive industry. U.S., European and Asian markets are contributing to a large extent in the development of automotive industry. Due to globalization, the pressure on manufacturers, suppliers, and the dependent businesses has increased. The demand and preferences of customers are changing with improved technologies in automobile industries.
It’s a tough challenge for automobile industry to cope with ever-changing trends in the industry. Customers and manufactures are becoming more quality conscious. Market research reports determined new methods adopted by manufacturers for improving quality and productivity like assistance of computer design, production, and testing. Total Quality Management, Six-sigma, 5 S, Kaizen, just-in-time etc. Use of these techniques has increased durability of parts which results in less need for repairs. Globalization has increased the competition in market which increased cost pressures on producers. Many producers had cut-off prices by using advanced techniques of productions and offered quality products at low price to the customers. National focus on volatility and environmental movement has increased the pressure on automakers to opt for alternative energy resources like bio-fuels, hydrogen, etc. During the recession phase automotive industry had suffered a lot. The production and sales decreased with shift in trends. The number of automobile manufacturers is increasing every year.
In the present scenario the rates of internet savvy and techno savvy customers have increased. This in turn forced the global automobile industry to do technological innovations to survive in the market. Research reports have analyzed that in days to come the demand for hybrid vehicles may increase due to increase in fuel prices. Some growing trends in automotive industry are shift in demand from large vehicles to small vehicles and from high-consumption vehicles to fuel-efficient cars. New technologies were introduces in the industry like diesel hybrids, clean diesels, and hybrids, manufacturers became more customer centric. The challenges of automotive industry increased with emergence of globalization, new technology, change in customer demands and economic uncertainties. To overcome these challenges companies started investing more on research and development of existing technology.
This was done to modify engines and producing more fuel-efficient vehicles and machines so that customers can save cost of spending on fuel as well as to increase the sales, profitability and market share. Fuel efficient vehicles like power and battery vehicles came into existence with innovations in technology. Manufacturers adopted production techniques like mass production, lean production and craft production to get benefits if economies of cost and reduce cost of production per unit. Major innovations made by manufactures in product offerings were improved transmissions and engine modifications which improved the operation level of engines. Businesses have been making continuous changes in their production methods and technology in order to serve customer needs, meet customer expectations, improve productivity, increase sales, increase market share and in all to sustain in the market.