Trend in Asian and European Automobile Industry and its Challenges

Abstract

The automotive industry has come a long way since its starting with a horseless carriage in the 1860s. The automotive sector is regarded as an important driver of economic growth. The paper looks into the ongoing development in the automobile industry. The current study is explanatory in nature and gathers data on the automobile industry. It provides in-depth knowledge of the most recent developments in this sector. The results show that the Asian market, with its availability of a large and cheap labour force and growing market, has seen significant maturation. In contrast, with its culture of research and innovation and the presence of major automobile companies, the European market has been able to draw growth from other parts of the globe, which has ultimately allowed them to maintain their stance in the market. There has been massive development in the automobile sector in recent years. But an increasing number of competitors, environmental laws and other multiple factors are affecting the industry. The findings implies that these factors need to be properly tracked as it plays a crucial role to predict the future market and helps in better understanding the automobile market to gain sustainable competitive advantage.

The Impact of Scandalous News in the Automobile Manufacture on Companies from the Same Industry: A Comparative Study on the Chinese and European Markets

“…Consumer's need and demand created separate market segments for electric cars, diesel-powered cars, sport, racing, and luxury vehicles, which led to technological and industrial developments in the industry. Whereas, Chinese market was always attractive for foreign manufacturers due to its low labour cost and tariff, generating foreign investments (Joshi, 2019). Moreover, the demand for cars in China greatly increased after the reform and open policy.…”