Automotive Industry
Cars, One of the most significant technological creations by mankind making everyday traveling much easier and now in fact lavish. The automotive industry is growing at a much faster rate thus making big car manufacturing industries compete at a faster rate than before. Companies now are competing to serve their customers with the best style of cars. Not only this, the automotive industry is contributing to the economy of countries thus contributing to the GDP as well especially the United States of America.
This industry makes 60 million cars and trucks a year estimated and so you can imagine the consumption of oil per year by these vehicles! Also over 1.7 million people are employed by automotive industry alone and roughly about 4.5 percent of us jobs are braced by auto industry so this means that people who in these jobs actually earn over dollar 500 billion annually. This, however, is just a rough idea to stress upon the fact how important automotive industry is and at how much it’s growing. It’s very pertinent here to mention exactly how a country’s GDP and its economy are directly related. From 2009 to 2013 china’s automotive industry grew annually at a rate of 18.6 percent.
The CAGR for India’s auto industry was 16.3 percent whereas Indonesia was behind with a CAGR of about 15.1 percent. The economies that grow at a higher rate need finer means of transportation and also of course faster mobility and that means more vehicles are both made and sold thus attracting more investment.
Car manufacturers such as Honda, Toyota and Ford encountered high growth in Asia during the slowdown in the west. As an outcome of much easy and faster transportation economies are dependent on the mobility of trucks, cars, and buses. This mobility has caused the remote population to interconnect which has grown commerce. The transportation of good between consumers and goods has become an industry itself. There’s no doubt that personal mobility is admired by everyone as it gives potential or say power visually and virtually and so it becomes a part of personal freedom. Nowadays personal mobility is an essential part of an individual’s personality.
This industry is among the best-growing industry sectors worldwide, it has linkages with other supplier industries which give it an enormous role in economic development and so it does have a powerful political influence. In today’s world, the economic growth of any country cannot be envisioned without the automotive industries as this industry is not only helping in the economic growth of western countries but it also has potential in eastern countries.
The contribution of this industry in the global domestic product is increasing and this growth will for sure create new jobs and the average wage will also increase. Not only this, it contributes to the expansion of the taxable base, impacts scientific and technical advancement, and revenues of the state budget. The proper functioning and growth of the automotive industry is very prime not only economically but also socially for any country. This industry has and will continue to support a lot of areas of economy and this blog is just a rough idea on how important this sector is for any country.
