Industry Analysis Essay Example | Topics and Well Written Essays - 1250 words

Industry Analysis - Essay Example rs behind the recovery of the global economy, which had been adversely affected by the recent financial crisis and its financial shocks for the past five years (Pendrill 4). Currently, the industry is worth USD 800 billion, and market analysts predict that the global market for vehicles, particularly that of cars and light vehicles will increase from the current 80 million units bought annually, to reach more than 100 million by 2020 (Pendrill 4). Market analysts are forecasting that that the larger portion of the market expansion will come from emerging economies, including India and China among others. According to the statistics provided by the World Bank, car ownership in these markets stands at 58 cars per 1000 people in China and 18 for India; these figures are not comparable to those of European countries, where the average ratio is more than 500 cars per 1000 people. The high car ownership ration shows that European markets are saturated, therefore will not be the major drivers of market growth for the industry (Pendrill 4). In the recent past, the leadership of the automotive industry has featured three dominant players, including Toyota Motors, General Motors and Volkswagen AG. As of April 2013, these three giant players competed against one another, with the target of taking the top place (Muller 1). The race remained tight between the three main players, in the areas of production output and that of sales levels. During the year 2012/13, Toyota made sales of 9.7 million cars and trucks, which gave it a better standing, as compared to General Motors. General Motors, during the same year, sold 9.29 million cars and trucks and Volkswagen sold the least number of units out of the three companies; Volkswagen sold 9.1 million vehicles. However, from a comparison of the revenue levels, the profits made and the value of assets, Volkswagen was the unchallenged winner; VW made higher figures, when compared to the two other main competitors: Toyota Motors and GM