Market Structure Of Automobile

Automobile market is one of he biggest market in the world. Here we will try to understand about the market structure of an automobile industries from parts manufacturing to recycling and disposal of automobile and parts.

Thus, the automotive market is essentially above the market structure

.Parts Manufacturer

a- Original Equipment Manufacturers (OEMs):

Role: OEMs supply high-quality, standardized parts to car manufacturers

Example- Sundaram Clayton Ltd, Minda Industries Ltd, Continental AG Etc.

b. Aftermarket Parts Manufacturers:

Role: These parts are used for vehicle maintenance, repair, and customization in aftermarket apart from assembly plants.

Example- Dorman Products and Tenneco, Bosch Etc

.Vehicle Assembly Plants

Role: Companies that assemble vehicles using parts from various suppliers. These companies design, manufacture, and market vehicles globally.

Major players include Toyota, Volkswagen, General Motors, Maruti Udyog Limited Etc.

.Distribution and Sales

A New Car’s Journey from assembly plants to customers

Fresh vehicle comes from the Assembly Line –  Transportation like Over the Ocean – Back on Land at deport point – Transported from deport point at the Railroad Auto Ramp – Getting to the Dealership – Sales to the customers.

.Authorized Dealerships

The primary function of a car dealership is to sell new vehicles to customers. However, their role extends beyond just selling cars. They also offer various services to assist customers in their car-buying journey.

.Recycle and Disposal

a. Salvage Yards:

They provide affordable used parts and help in recycling vehicle components. Businesses that dismantle old or damaged vehicles and sell usable parts.

b. Recycling:

They contribute to environmental sustainability by recycling vehicle materials. Facilities that process end-of-life vehicles to recycle materials like metal, plastic, and glass.