Title: Mastering the Literature Review of Automotive Industry: Your Path to Success
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During the 1910s, the development of technologies and societal infrastructure continued in addition
to new manufacturing practices and business strategies. Following have been the features of Auto
industry in the past financial year. Organizations gain market leadership by understanding consumer
needs and finding. Although their adoption of JIT and other philosophies helped improve the quality
of U.S. vehicles, it did not fully bridge the gap between the quality of U.S. and Japanese cars. This
gap remained because U.S. automakers tried applying JIT techniques without a full understanding of
the whole Japanese manufacturing system, while Japanese automakers had decades to develop,
refine and master their JIT approach. The transformation of the automobile industry was a massive
project and has remained a massive project that also requires an effective business model that
transforms the automobile business itself and the personal transformation, including the
transformation of the consumers' mindset (Etzion and Struben, 2011; Pg. See Figures 1 and 2 in
Appendix A for a timeline of the automotive industry from 1895 to 2000. On the above table the
main thing that we have to focus is Significance of variables i.e. Sales. You should visit a reputable
auto shop that is good at transmission repairs in Las Vegas to curb the problem. Customers can
choose from a range of vehicle and finance packages offered by the company. Both types of
transmission make use of a clutch, which allows the gears to be engaged and disengaged. Consumers
desired vehicles that were less harmful to the environment, which led to the introduction of hybrid
vehicles by Japanese automakers in the late 1990s. The Indian literary tradition is primarily one of
verse and is also essentially oral. It is apparent that today’s successful companies share many
common business strategies and visions. The automobile industry exists for more than a century and
tracing the changes and development that took place there could tell volumes about the human
history. Nissan’s new management has recorded excellent improvements, but will need to implement
new strategies in order to raise it to the next level. Nissan’s product quality and history is comparable
to the other Asian companies, but it has suffered from a tumultuous past. This study aims to make a
descriptive, systematic, actual and accurate. However, growth is potentially huge in the rapidly
industrializing nations of China and India; in these booming markets, companies could take
advantage of the opportunities to reap handsome rewards. In the face of an industry-wide decrease
in growth, Nissan’s outlook is not outstanding. Doing so would make SAIC one of the six largest
automotive manufacturers worldwide. R k Raushan- Marketing Mix of Automobile sector with
special referrence to SK. Environment The environment is becoming technology friendly day by day.
Service Process Improvement: Ten Lessons from Japanese Manufacturing Operating. The volatility
of Ford’s stock, in terms of its Beta rating, is in the neighborhood of 1.6 which indicates that
investing in their stock has fairly high risk. However, the automotive industry still has major
challenges in terms of supply chains. R k Raushan- Marketing Mix of Automobile sector with special
referrence to SK. Almost simultaneously, in America, the societal infrastructure that would provide
fertile ground for the proliferation of automobiles was being set. However, during this same period,
DaimlerChrysler increased operating profit by 38%. It will take some time for GM to become
profitable again. Such an operation, if successful, would surely be snatched up by one of the global
giants and incorporated into its fold.
Studying these trends helps predict where the industry is headed and how it will evolve to meet new
challenges. This results in distributed competition in new markets, with the large international firms
competing not only with each other but also with the numerous smaller, local companies. These ten
companies are analyzed in terms of their market position, their financial situation, and their
management strategy. A Case of the Manufacturing Sector in Gauteng Province. The editors will
have a look at it as soon as possible. In addition to organizational restructuring being vital to the
future success of Ford, the company realizes the need to reestablish their market share, particularly in
the U.S. domestic market. They have begun attempts to do this with the introduction of many new
vehicles to freshen and invigorate their product line. I hereby declare that any internet sources,
published or unpublished works from which I have quoted or drawn reference have been reference
fully in the text and. Currently, Toyota holds a 6% profit margin, dramatically higher than any of the
Big 3. DaimlerChrysler is the fourth largest vehicle producer in the world in terms of units sold
behind GM, Ford, and Toyota. On the above image growth in sales of passenger cars in India has
been highlighted. Famous vehicle models such as Ford’s Model T were developed during these times
and, by 1906, car designs began abandoning the carriage look and taking on a more “motorage”
appearance. Both types of transmission make use of a clutch, which allows the gears to be engaged
and disengaged. This is especially relevant in today’s mature markets where numerous older brand
names have repeatedly joined forces under consolidated central managements. Fetch This Document
Germany - Wikipedia, The Free Encyclopedia In 1948 West Germany became a major recipient of
reconstruction aid under the Marshall Plan and used this to rebuild its industry. Dings, dents, and
any other defects are repaired right on the line by skilled body repairmen. Supply chain agility in the
automotive industry can be seen from. The scope of growth of leases in this sector is very high owing
to the large number of. GM’s debt ratio illustrates that their overall debt nearly equals their assets;
their current ratio shows that they have more liabilities than assets in the upcoming year; and the
return on sales and equity are very low in comparison to industry standards. PTI, March (2010):
Stepping up efforts to penetrate deeper into the semi urban and rural. Companies such as Toyota and
Honda have established an upper hand on the Big 3 manufacturers by being the first to develop
hybrid vehicles. Hyundai’s growth is fueled by increasing international sales. In the short term the
CV volumes and financing has got. So I researched the ideas and found a few books which talked
about the luxury brands in Asia under economic recession. Alignment of individual behavior, which
means the company ensures the roles and. Customers can choose from a range of vehicle and finance
packages offered by the company. Could prove an important step in reducing complexity and
investment requirements, while. Volkswagen, on the other hand, will have a rough time over the next
few years. Many manufacturers outsource the manufacturing of many of the parts required for
assembling to fabricators in Asian countries especially China where Labour and raw material costs
are very low. But at the same time people are also conscious of pollution and other matters and they
want cars which are less harmful for the environment. If we analyse the car registrations in the first
2017 quarter and we subdivide them by power supply, in March the market share of petrol cars
remains stable with 33.5%. Whereas for diesel cars the percentage grows from 55.8% in February to
56.2%. The market of hybrid and electric cars features rising volumes that exceed the average, both
in the month and in the progressive since the year beginning.
Although the barriers to new companies are substantial, established companies are entering new
markets through strategic partnerships or through buying out or merging with other companies.
Moreover, the growing interest of companies in exploring the rural markets further aided the.
Commercial Vehicles Leasing in India: Globally there is a clear domination of lease over. New
Automotive technology The automotive Industry has exceeded expectations when it comes to
technology. SAIC is not publicly traded, but has one subsidiary, an auto parts manufacturer titled
Shanghai Automotive Co., Ltd, listed on the Shanghai Stock Exchange. In these areas, the
substitutes available (e.g., walking, mass transit, bicycles, etc.) can be less costly than automobiles
and thus alternative modes of transportation are often preferred. To be successful, SAIC will need to
adapt itself to the markets it intends to penetrate: in China, it will need to transition from the
traditional Chinese automotive market which featured lavish passenger cars targeted at government
and business officials to the future market of compact sedans and other smaller, cheaper cars targeted
at the growing middle class. Four well-established, Euro-American companies were considered in
this report: DaimlerChrysler, Ford, General Motors, and Volkswagen. For the analysis of my research
topic i.e. Automobile market of India I have taken. Primary products value of shipments. 2.
Secondary product value of shipments. 3. Total miscellaneous receipts. Team A 31 Primary product
shipments are used in the calculations of industry specialization ratio and industry coverage ratio.
PTI, May (2008): Global IT major IBM today said it has identified Pune and Chennai as key. And
although currently successful, it is much more difficult to predict the future success of Maruti Udyog
and Shanghai Automotive Industrial Company. The obtained fuel can be used in I.C. engine as an
alternation. Hyundai’s growth is fueled by increasing international sales. Hyundai’s growth is fueled
by increasing international sales. Now foreign auto dealers were facing lesser restrictions to operate
in overseas markets. Environment The environment is becoming technology friendly day by day.
Without their cooperation and support, this study would never have been possible. The automotive
industry is inherently interesting: it is massive, it is competitive, and it is expected to undergo major
restructuring in the near future due to globalization and decreasing oil reserves. The reason is simple,
we need to find substitute for oil and gasoline powered cars and we need to lower the pollution from
vehicles. PTI, April (2013): Analyses done by press trust of India that the auto companies and
ancillary. Suppliers are increasingly included in production processes at international level. The
expectations of the investors are also changing. The industry has many suppliers supplying the
fabricated parts or raw material to the industry. Carefully planning through all stages of the research
is a necessity. In June 2004, Hyundai opened its first plant in the U.S. In 2006, Hyundai plans to
start construction on a new production plant in Europe. Academic publishing, Expectancy theory,
Motivation 1655 Words 3 Pages Literature Review If you believe everything you read, better not
read. In fact, the barriers to entry for new (or different) markets may be quite low; in the 1980s, U.S.
companies Team A 4 practically invited Japanese makers into the U.S. by failing to offer quality
vehicles in the lower price markets. Consolidation: As India seeks to become one of the world’s
largest automobile markets, it is.
In the 1930s, several new vehicle brands were developed (e.g., Ford Mercury, Lincoln Continental,
Volkswagen) and trends in vehicle consumer preferences were established that differentiated the
American and European market. In the U.S. market, consumers preferred luxurious and powerful
cars, whereas in Europe consumers preferred smaller and low-priced cars. Currently, Honda ranks
sixth in sales within the automotive industry. In what follows, we will address the following trends
individually: international expansion, conglomeration in mature markets, distributed competition in
new markets, increased environmental regulation, increased energy constraints, and increased
operational efficiency. Automakers also started to merge with other companies (e.g., GM acquired
Chevrolet) and to expand to other markets (e.g., GM of Canada). In the 1920s, the development of
infrastructure, adoption of new manufacturing practices, and the merging of companies continued
(e.g., Benz and Daimler, Chrysler and Dodge, Ford and Lincoln). In the U.S., the Bureau of Public
Roads and the enactment of the Kahn-Wadsworth Bill helped facilitate road-building projects and
develop a national road system. This is followed by an analysis of the industry’s structural
characteristics using Porter’s 5 Forces Model as a framework, which provides an understanding of
the automotive industry as a whole in its current state. September 2009, PNB tied up with Mahindra
and Mahindra for financing their vehicles. Reflecting this trend of low prices and increased market
share, in 2004 Hyundai reported a dramatic increase in annual revenues to 50.7 billion dollars and
only a small gain in net income to 1.78 billion dollars (see Figure 8 in Appendix A). Manufacturers
are already planning for the future: early advocates of technological. They have given an epic saga of
the rise as well as the demise of the automobile industry, missed opportunities and bankruptcy,
focusing on Detroit's big three firms namely, General Motors, Chrysler, and Ford. See Figures 1 and
2 in Appendix A for a timeline of the automotive industry from 1895 to 2000. It originally began
producing motorcycles in the mid 20th century and began manufacturing automobiles (the Honda
Civic) in 1972. Hyundai’s growth is fueled by increasing international sales. Where useful, specific
statistics have been incorporated into the analysis including: market share, return on equity, return on
sales, revenues, net expenses, net income, market value added, number of brands, number of models,
debt rating, and debt ratio. In the 1980s, the U.S. automotive industry began losing market share to
the higher quality, affordable, and fuel efficient cars from Japanese automakers. This was ironically
due to the license raj that forced Indian. For example, the Chrysler Group is better able to manage
and market Dodge products in the U.S. from Detroit than DaimlerChrysler central management
would be able to do from Stuttgart; local management better understands both the customer and the
brand. In 2004, AutoWeek named the G35 “America’s Best Coupe”. Before Ghosn’s arrival, Nissan
had experienced seven years of losses. And brand positioning denotes the positioning of the.
Changes in those markets, such as the recent downturn in China’s sales, could be disastrous for these
companies, which lack geographical diversification. The automotive industry is comprised of
powerful buyers who are generally able to dictate their terms to their suppliers. Along with Toyota,
Nissan has recently become one of the most successful Japanese automobile companies in the U.S.
The Infiniti brand has regularly been the recipient of industry awards. It is apparent that today’s
successful companies share many common business strategies and visions. However, good
management and a strong global presence will serve Nissan well as the competition moves to
emerging markets. 2.8. Shanghai AIC The Shanghai Automotive Industrial Company (SAIC) Group,
representative of the numerous up-andcoming auto manufacturers in Asia, is a government
controlled firm that produces passenger cars, tractors, motorcycles, trucks, buses, and automotive
parts. Europe features a globally positive situation, with moderate growth expectations, in search of a
new stability. Segmentation is actually tee prelude to target market selection. But because of this high
market potential and relatively low barriers to entry, competition is fierce and oversupply a distinct
possibility. As a result of this improved third-quarter performance, Chrysler’s U.S. market share has
risen to 13.3%. More broadly, the popularity of DaimlerChrysler models can be seen in the steady
rise in revenue over the past three years (see Figure 5 in Appendix A). Letter to Stockholders (2004).
21. General Motors Investors Relations. Honda 22. Honda Motor Co. Ltd. (HMC), Business
Summary, Basic Chart, Key Statistics, Income Statement, Balance Sheet and Cash Flow, from Yahoo
Finance, 23. Indian automotive industry produces a wide variety of vehicles: passenger cars, light,
medium and heavy commercial.
Supply chain integration connects the internal activities, processes and. In response to this market
share loss, U.S. automakers began focusing on improving quality by adopting different Japanese
manufacturing management philosophies, such as JIT. A Brief History of the First 100 Years of the
Automobile Industry in the United States, Chapter 1 - A century whittles auto makers to 3, 2. After
being the first company to pursue that market, Volkswagen held a large share of the government and
taxi sectors, which provided a consistent source of income. Of these new markets, China appears to
be the most promising. Team A 3 1.2. Porter’s Five Forces Analysis Michael Porter identified five
forces that influence an industry. The researcher states that given this complex industry scenario that
is expected to continue for the next 3-4 years, there is an urgent need to realign the business
priorities to emerge as a winner in the increasingly competitive marketplace, that is needed to be done
through developing a successful business plan. In 2004, AutoWeek named the G35 “America’s Best
Coupe”. This so-called “merger of equals” was the culmination of a long complicated family history
that in some sense follows the history of the automobile itself. In this development and dynamic
world, I feel proud for being a student of BBA programmed. New players also entered the market
with different products than that of Ford like Mercedes, BMW, and GM. In 1998, Hyundai acquired
a 51% stake in Kia, but has since reduced its share to 37%. If GM can reign in escalating costs and
offer cost-competitive products, the automobile giant will be in position to once again assert its
dominance of the market. 2.4. Honda Honda Motor Co. (HMC) was established by Soichiro Honda
in 1946. Figure 14 Share of Value Added Accounted for by the 4, 8, 20, and 50 Largest Companies:
1997 Explanation of the determining of VALUE ADDED This measure of manufacturing activity is
derived by subtracting the cost of materials, supplies, containers, fuel, purchased electricity, and
contract work from the value of shipments (products manufactured plus receipts for services
rendered). Although sales in its largest markets of Western Europe and South America have
remained constant or strengthened over the past year, sales outside of those markets have dropped.
The degree of rivalry in the automotive industry is further heightened by high fixed costs associated
with manufacturing cars and trucks and the low switching costs for consumers when buying different
makes and models. In addition to the Internet, other forms of interactive media include. Since 2002,
revenue has increased approximately 50% (see Figure 10 in Appendix A). And although currently
successful, it is much more difficult to predict the future success of Maruti Udyog and Shanghai
Automotive Industrial Company. The majority of India’s car manufacturing industry is evenly
divided into three clusters. The quinary sector comprises of health, education, culture, research,
police, fire service, and other government industries not intended to make a profit. R k Raushan-
Marketing Mix of Automobile sector with special referrence to SK. Degree of Rivalry Despite the
high concentration ratios seen in the U.S. market (see Appendix D), which typically signify that a
lesser degree of competition is seen in the industry, rivalry in the U.S. and the global automotive
industry is intense. The service team is technically qualified and trained to. Political Stress is being
laid on use of public transport rather than private cars. However, growth is potentially huge in the
rapidly industrializing nations of China and India; in these booming markets, companies could take
advantage of the opportunities to reap handsome rewards. The company’s first model (Cotina) was
released, in cooperation with Ford Motor Company, in 1968. Now the manufacturers required
something very unique to attract customers from other brand and increase their sale. There are four
key industrial economic sectors: the primary sector, the secondary sector, the tertiary sector, and the
quaternary sector. Although the barriers to new companies are substantial, established companies are
entering new markets through strategic partnerships or through buying out or merging with other
companies. An agile supply chain must respond to a variety of.
In 2004, DaimlerChrysler sold 4,000,700 passenger vehicles and 712,200 commercial vehicles.
Europe features a globally positive situation, with moderate growth expectations, in search of a new
stability. DaimlerChrysler, Nissan, Volkswagen, and Honda were chosen because of their status as
stable international companies who have been in the automobile business for many years. ET bureau,
May (2016): The capital will witness the country's first automobile carnival 'Auto. The reason is
simple the industry has already seen much of growth and profits. Once the mating takes place the
automobile proceeds down the line to receive final trim components, battery, tires, anti-freeze, and
gasoline. See Figure 12 in Appendix A for Volkswagen’s recent net profit history. The exception to
this statement occurs in the global urban areas with high population densities. Electronic health
record, Health care, Health care provider 2504 Words 7 Pages The Indian capital market has changed
dramatically over the last few years, especially since 1990. Income -0.01 0.016 -0.756 -0.637 0.545 -
0.049 0.028 0.073 13.673. These closures are prevented by agreements made with the United Auto
Workers (UAW) through 2007. The results of all this are clear: in 2005, Toyota won a record-
breaking 10 segment awards in J.D. Power and Associates Initial Quality Study, with Lexus carrying
top honors for five years straight. The results of all this are clear: in 2005, Toyota won a record-
breaking 10 segment awards in J.D. Power and Associates Initial Quality Study, with Lexus carrying
top honors for five years straight. These strategies combine to give Toyota a significant sustainable
competitive advantage. Export and domestic market went on driving production data: in the first
2017 quarter, the automotive market achieved growing volumes by 12%. In contrast, Brazil has 81,
Indonesia 21, India 12; and China only 10; these unsaturated markets provide potential for
phenomenal growth. In addition to targeting market segments by locale, identification of and
focused attention to underserved markets have helped smaller producers wedge their way into a
larger market share. Even with the planed expansion to new Indian markets, MUL’s future success
will depend greatly on how well it can compete with its new international competitors. Team A 9 2.7.
Nissan Nissan Motor Co., Ltd. (NSANY), was established in 1933 in Japan, but its roots go back to
1914 when the first Datsun automobile was produced. Volkswagen is also attempting to regain its
prominence in the Chinese market. Nissan, including all consolidated subsidiaries, currently employs
123,748 workers in 18 countries on 4 continents. Because demand for DaimlerChrysler products has
remained relatively stable in the face of increasing oil prices, their future looks relatively bright.
These forces are: (1) degree of rivalry; (2) threat of substitutes; (3) barriers to entry; (4) buyer power;
and (5) supplier power. In general, the companies without strong labor unions have more flexible cost
structures in addition to having lower overall labor costs. This article presents a review of the
literature, in the field of consumer buying behaviour. Brand Name only. The no. of customers
satisfied with the fuel efficiency are very low. In August 2005, the production of 25,683 vehicles
was delayed due to a strike by the company’s unionized workers. Reported contract work - Receipts
for work or services that a plant performed for others on their materials. 2. Value of resales - Sales of
products brought and sold without further manufacture, processing, or assembly. 3. Other
miscellaneous receipts - Such as repair work, installation, sales of scrap, etc. This can be attributed to
the lack of well-planned cost structures within the industry’s largest producers. Today,
DaimlerChrysler employs a total of 384,723 people in 17 countries. Conglomeration in mature
markets and distributed competition in new markets is a remarkable but obvious trend in the
automotive industry in recent years.