What is the Automotive Industry?
Automotive Industry- World’s largest more than 100 years old revenue-generating economic sector!! It is a kind of industry that includes a wide range of companies that manufacture motor vehicles.
Australian Automotive Industry-
The automotive industry of Australia is facing a lot of social issues. There are a lot of factors affecting the automotive industry such as- technological, primary, economic and social. But today we discuss the social factors. As we all know that people often go with the trends. Moreover, it affects the demand for the company’s product. Therefore, companies also make efforts to adapt the social trends.
The social challenges fall into 3 categories-
- Macro-economic environment affecting the Australian Market
- High competition in the small Australian Market
- A big change in consumer needs, values & lifestyle
- Let’s figure out social factors deeply to its effect on Australia’s automotive industry-
Macro-Economic Environment Impact-
The macro-economic environment affects the business’s profitability, operations, business strategy & working conditions. It is an of dynamic nature. Therefore it keeps on changing. The automotive industry is becoming more challenging as time passes. A lot of macroeconomic factors influence the automotive industry such as- employment, growth & technological advancement. Car manufactures have to deeply understand the economic business model.
The potential to change the business model is more quickly for the profiling, knowledge or successful business is a great opportunity for auto marketers. Some big brands such as Tesla has become a complex barrier to competitive entry. Due to the large scale capitalization of global economies, the car industry becomes more strategic.
China & US are also compensating regarding declining volume in respect of Europe. Therefore, the Business strategy of the Australia market may lead to some changes. In Australia margin is a more important factor rather recovering cost. Moreover, the automotive industries should study the market demand & marketing the vehicles in appropriate way.
High Level of Competition
Australia is the most competitive car industry on the world level. It comprises of 64 brands along with 240 plate’s name. The big brands such as Holden, Nissan, and Mitsubishi are pulling down the vehicle industry in Australia. Because they have democratized the tech features of the upper end of the market. At the same moment, their brand power is decreasing.
Another famous brand – Hyundai is also making efforts to push up the automotive industry as they are improving the latest technology & styles of their vehicles.
Changes in Consumer Lifestyle & Needs-
Change in needs, values & lifestyle of people has a challenging task for the automotive industry. People want to update with new technology. Usually, what we see today- People demands more & more latest technology such as – upgrade features in the new model. In simple words, we can say people want something new & easy in every new car model. Approximately, 50 to 60 years ago, the holden car cost typically cost 45 weeks of earning of the worker. But now it is equal to 29 weeks. Look yourself this big a wonderful opportunity for car owners to produce latest vehicles.
Zero-emission vehicles– Another challenge for the Automotive Industry. A lot of brands are preparing with this new innovation & focusing on zero-emission vehicles. Therefore, it will protect the environment from being polluting. New technologies & innovations have a positive impact on consumers & manufactures. Because demand for new innovation is also increasing.
The Bottom line!!
Lastly, we would like to say that the automotive industry should make new vehicles as per the needs of people. It should also be affordable to the middle class. Make sure to overcome this issue so that more & more people can purchase the vehicle at a low cost. In addition, This will take the automotive industry at the peak of the mountain.