Automotive Industry Interesting Facts about Its Segments and Value Chain

Automotive Industry: Interesting Facts about Its Segments and Value Chain

The sector that focuses on manufacturing automobile gadgets like cars and two-wheelers and continuously works its advancement is known as the automotive industry. It includes a wide range of automobile companies, apart from manufacturing also looks after designs, advertisement, and ensures maximum sales of motor equipages. However, the industry is spontaneously advancing and improving towards a new dimension.

It is an undeniable fact that, like any other industry, the prospect of the automotive sector also depends upon sales. Without skilled professionals, it is impossible to get assured improvement in sales. Day by day, the automotive industry contributes good revenue to raise the fund of the country’s economy, and it has become one of the essential sources of income.

The increasing demand for car loan denotes the popularity of motor vehicles even during this pandemic situation. However, the automotive industry is divided into several segments and comprised of the various value chains. Let us know about them to have a better concept of this industry.

Significant segments of the automotive industry

As mentioned, it is an industry that covers a wide range of motor vehicles. Besides, it also affects the agricultural and construction sector by manufacturing different vehicles.

For instance, the usage of tractor brought a drastic change in agriculture and helping farmers to earn good revenue.

Important segments of the automotive industry include,

  • Portable conveyance

Among portable conveyance, all the two-wheelers and sometimes three-wheelers also come under this segment. Generally, these types of vehicles are best for small business to carry products and people. Nowadays, bikes are also becoming the means of valuable transportation by offering passenger dropping facility.

  • Lorry and bus

Being portable lorry and bus are considered as high weight transport. Usually, these transports are best for public usage due to huge space. However, the lorry is best for goods transport while the bus is suitable for common people. The advancement of the automobile industry is clear when you see electric buses instead of diesel or petrol consuming buses.

  • Agricultural and constructional machineries

It is quite common that lorry and bus are not suitable to carry on the work of agricultural and constructional sites. Special requirement of such sectors are responsible for the manufacture of new types of vehicles like digger, crane, dump trucks, tractors, field cultivators, seeders and planters, harvester etc. These specially designed vehicles are helpful in various works.

  • Cars and mongrel

In the very initial stage of the automotive industry car is one of the most well-known manufactured gadgets. Although a few years ago, diesel and petrol used to run a car but nowadays the need for petrol is vanishing. Instead of it, electricity and gas are taking place. Batteries used inside the cars are easily changeable and cost-friendly too. Thus, the mongrel motor vehicles are invented.

  • Automatic vehicles

The penetration of technology in the automotive industry brought huge change and resulted from these automatic vehicles taking place. These are generally robot-driven cars where a passenger must not drive as it automatically drives to one’s destination. A highly sensitive sensor is installed into these cars, which helped reach the destination without being lost.

In addition, people are crazy about this type of automotive cars and the demand for the cheapest car loan to purchase these vehicles are increasing.

A detailed description of Value chain of automotive industry

This value chain includes all the steps which are covered to manufacture a motor vehicle. From the initial stage of concept to getting the vehicle ready for sale, all come under this value chain.

  • Raw materials

Collecting raw material is the initial stage of manufacturing a car. Unlike any other industry, here too, major suppliers supply the raw materials. Sometimes suppliers from different countries supply these necessary raw materials.

  • Designing and manufacturing

Pre-production includes designing, and after that, it represents a model in front of the manufacturers. While workers complete the entire work of manufacturing, people engaged with operations take care of the design. However, hiring manufacturers and designers, an automobile company needs to pay a considerable amount.

Besides, the shipping cost also comes under the expenses. For this reason, many automobile companies are now recruiting designers and manufacturing team to save additional cost.

  • Engineer’s task

Without the engine, a vehicle remains useless after the manufacturing of an outer shell. An engineer installs an engine within the car to give it mobility. At this point, the research of engineers plays a significant role.

  • Ensuring quality and providing warranty

A motor vehicle must comprise quality parts and an engine so that it may run for a long time and buyers may find the ease of driving. At this step, both these ensured by the experts.

  • Connection of internet

These stage experts ensure that newly manufactured cars should enable internet connectivity and help a driver get proper navigation.

  • Advertising and sales

In order to generate good revenue an automobile company now focuses on its marketing. Effective advertisement strategy will attract more people thus the purpose of sales solved. The increasing demand of motor vehicles provides spontaneous support to automotive industry.