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Compose a 1750 words assignment on the global car industry facing the challenge. Needs to be plagiarism free!
Compose a 1750 words assignment on the global car industry facing the challenge. Needs to be plagiarism free! In developing countries, governments are seen to strongly favor the development of the car industry as it generates revenue through taxes and employment. China and India’s political sectors are seen to expand their infrastructure in order to support industrialization and the higher demand for durables such as cars. However, in industrialized economies with the population having larger purchasing powers, governments are more concerned with the pressing issues of sustainable development and environmental preservation.
Economic: The difference in the economic situation of various nations will be having different effects on the markets of the global car industry. The United States is forecasted to outpace the Euro Zone in terms of economic growth while the whole of Asia Pacific will be experiencing robust growth except for Japan. In general, it should be noted that “growth and wage levels are expected to be slower in the real terms in the immediate future.” This, in turn, can lead to low consumer confidence which is expected to suppress demand for new cars while encouraging the retention of old ones or turning to the second-hand market. This bleak outlook is even coupled with the fact that most countries are employing tighter policy measures that squeeze the consumers’ disposable income through higher taxation schemes.
Social: One of the social factors which have a high impact on car demand and purchases is the level of nationalism. It is irrefutable that customers have a higher preference for purchasing products manufactured in their own country. However, this level of nationalism is expected to be eroded by the subsequent increase in education, travel, and integration.
Technological: Technological developments have greatly contributed to the improvements in the process, design, and efficiency of car manufacturers. It is expected that technological innovations in the global auto industry will focus on reducing environmental hazards and pollution caused by emissions. .