Today’s Automotive Industry:

The global automotive industry today is delivering unprecedented levels of customer value. Vehicles today are vastly superior to and more reliable than those produced just a decade ago in terms of economy, safety, comfort, functionality and performance. Fierce global competition for consumers is the prime mover behind this increase in customer value.

To be successful in today’s global marketplace, a service provider is expected to develop and deliver innovative solutions that will win customers, and to keep them coming back for more. Today's Automotive marketplace is noted to be highly fragmented with Manufacturers, Engineers, Electricians, Painters, Mechanics, Environment and Safety Groups, and so on. Top five Automotive Manufacturing Nations are noted to be – USA, Japan, China, Germany and South Korea.

There has been equal challenges which are faced by the Automotive Manufacturers, to arrive at a solution by optimizing the quantity and durability of the raw material being used for manufacturing the Automotive, which could be Glass, Steel or Plastic and still be able to match the safety requirement, which the present Automotive Customer demands from a specific market place! Automotive Manufacturer has trivial situation in entering the market place, do they need to invest in a customized product for satisfying a specific need which could arise in new marketplace or they need to introduce existing product to win their customer? Also factors such as Labour, Production Capacity, Inventory, Improving Supply chain, and Retail distribution performance, New CO2 regulations, Government Support and environmental sustainability influence the automotive manufacturers entry into a particular market.

There has been a significant increase in the amount of electronics that are being introduced in the Automotives, and this is expected to continue in the future, as car companies are compelled to introduce further advances in Car performance, such as Safety, Reliability and Comfort. From the developments, it is noted that 90 percent of innovations, in new Automotives are determined by software. Introduction of advanced control systems combining multiple sensors, actuators and electronic controls creates demands in the communication technology.


Automotive and Outsourcing Market:

Total Automotive marketplace is expected to grow in the emerging market places, which are going to be in the eastern region of the world. However, the demand in the west as predicted by the industry experts would surge even further. Russia, India, China and other ASEAN countries are the prime target for the future.

According to the Reuters and Nasscom reports, today’s total engineering industry is exchanging business worth $750 billion and total engineering market is expected to grow to $1.1 trillion (worldwide) by 2020 and offshoring up to $225 billion, where India expects 30% and China 46%. Among the outsourcing portion, Automotive industry takes a leading step and expects 19 percent potential.

A shift has been noted in the present Automotive Business world from West to East with focus being China, India and other ASEAN regions. However, many Economists worldwide extend their opinion that the “shift in the equilibrium would swing back”.