Global Car and Automobile Manufacturing Industry Market Research Report Now Available from IBISWorld

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Rising fuel prices and growing environmental concerns among consumers are encouraging car manufacturers to expand their portfolios of small cars and shift production to hybrid electric automobiles, which bodes well for future industry growth. Rising incomes in emerging countries will buoy demand, and manufacturers will continue to tap into these markets for their low production costs, helping revenue grow over the next five years. For these reasons, industry research firm IBISWorld has updated its report on the Global Car and Automobile Manufacturing industry.

IBISWorld Market Research

IBISWorld Market Research

Pent-up demand and economic recovery will aid revenue growth after recessionary declines.

The past five years were tumultuous for automobile and light-duty motor vehicle manufacturers, especially the Global Car and Automobile Manufacturing industry. Skyrocketing fuel prices and growing environmental concerns have shifted consumers' preferences away from fuel-guzzling pickup trucks to smaller, more fuel-efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold.

When fuel prices did fall during the second half of 2008, it was due to the US financial crisis ripping through the global economy. The meltdown began when a debt binge overwhelmed many US consumers and businesses. This had a domino effect throughout the developed and emerging worlds, with many Western nations following the United States into recession. Global Car and Automobile Manufacturing industry revenue fell about 15.4% in 2009. Pent-up demand will aid industry revenue growth, estimated at 5.2% in 2012, thus bringing overall revenue to an estimated $2.2 trillion. Overall, the large declines followed by recovery are expected to lend the industry marginal average growth of 0.5% per year during the five years to 2012. Throughout the past five years, growth in the BRIC countries (Brazil, Russia, India and China) supported production. According to IBISWorld industry analyst Josh McBee, rising income in these countries led to an increase in the demand for motor vehicles. Also, Western automakers moved production facilities to BRIC countries to tap into these markets and benefit from low-cost production. Over the next five years, the emerging economies will continue their growth, and demand for motor vehicles in the Western world will recover.

The industry is deemed to have a low level of concentration, and the largest four automakers are estimated to account for 33.7% of industry revenue in 2012. “There are several major automotive companies across the globe, each with a significant share of the market, and concentration has been declining over the past five years as firms in emerging economies (e.g. India) ramp up production,” says McBee General Motors spun off a number of its brands to smaller companies and reduced its size in 2009 and 2010. Ford lost some market share when it sold Jaguar and Land Rover to Indian manufacturer Tata in 2008. Last, concentration fell when DaimlerChrysler split into separate entities after the sale of Chrysler to private equity firm Cerberus in 2007. This downward trend in market share concentration is expected to continue over the next five years as automotive companies in emerging nations continue their growth spurts and large automakers in mature economies split, dissolve or grow at a slow pace. For more information, visit IBISWorld’s Global Car and Automobile Manufacturing industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry manufacture chassis for automobiles and light-duty motor vehicles and assemble final automobiles and light-duty motor vehicles. These vehicles include passenger cars, pickup trucks, sports utility vehicles (SUVs), crossover utility vehicles and vans.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique industry information and analysis. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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