The automotive industry of Australia is facing real challenges that are affecting it in many ways. It contains three categories that are:
- Macro-economic environment influence
- High-level competition in the Australian market
- Consumer necessities and standards
These three are the major social challenges that are affecting the automotive industry of Australia. By overcoming these challenges, Australia automobile industry can go to on the way of success.
Macro-Economic Environment Influence
What is basically meant by Macro-economic environment? It is a capability of changing business models successfully and very quickly. The other way is to get opportunities for prospectus knowledge that can be an important aspect of today’s automotive marketer. As with the passage of time, the automotive industry is becoming a commanding strategy worldwide. It is involving in important multinational companies’ capitalization on global economies on a large scale. It is playing a significant role in maximizing production capacity that is an ultimate solution for volume goals for profitability.
Tesla that has a name in the automobile industry is a very big hurdle in a competitive entry. The country like Australia is a very small unit in terms of production in the country that means it has a very small impact on the production of vehicles worldwide. It is a drawback that it has a very small volume market even below than 1 million units per year. So, the difference in volume is a huge impact on geographical economies. China and US are compensating on volume declination that can be a change for the Australian market. In Australia, the margin is more demanding factor than cost recovery.
The other thing that is dependent on the macro-economic environment is how long consumers will try to use a vehicle and stretch its life. All the other things like population trend, fuel prices, and motor vehicle density have a significant impact on local car manufacturing strategies. Car owners need to fully understand the business model with potential data.
High-Level Competition in the Australian Market
Australia was the most competitive vehicle industry in the world. The Australian automotive market had amazing 64 brands with 240 plate’s name. The major brands like Holden, Nissan, Ford, and Mitsubishi are pulling down the Australian automotive industry down by democratizing the tech features of the upper end of the market. So, they also pushing down their brand power in the country. Another brand Hyundai was also struggling to pull the automotive industry up by contributing the universal values and improving the style of vehicles.
Consumer necessities and standards
The main challenge for the automotive industry is consumer need and values that are increasing and getting high day by day. They demand new technological cars which are easy to handle and easy to drive. New cars are more accessible to more people. For example, in a few years back, typical Holden car cost 45 weeks of an average worker earning while today that cost only 24 weeks. This is all because of the heavy need of consumers. The customers have more necessities nowadays for innovations in vehicles. This is an advantage for manufacturers to be more powerful in increasing the production of new models.
Now a few years back, smart technologies are making its place by replacing the old cars and old technologies. Now the cars are interactive with each other and with the road as well. The new technology vehicle to vehicle and vehicle to infrastructure is starting its journey with the need of consumers. These technologies are making an effect on the automotive industry in a very positive way. It is an advantage for automotive manufacturers and for consumers as well.
With the increase in consumers, other technologies are also taking a big part in the automotive industry. This is leaving an impact on cars insurance and more intelligent systems. The increasing demand for innovations in the automotive industry resulting in meaningful engagement with these technologies. The driving process is ultimately changing with the increasing demand for self-driving cars.
Some surveys show that Ford had forecast of $800 million in case of the no-deal process. Some other surveys show that 74 percent of automotive manufacturers believe in a no-deal concept that will have a negative impact on the environment. This is also a big challenge for the automotive industry of Australia to survive positively.
Some other social challenges that the automotive industry is facing are zero-emission vehicles for a safe and healthy environment. There is a lot of working is under progress that brands are focusing on a zero-emission vehicle to keep the environment free of pollution.
Another social challenge that is affecting people life is average incomes in different countries. The cost of vehicles should be average so every middle class can afford a comfortable vehicle with some innovations. Because in many countries, the income of people is average that is making difficult for them to get a vehicle for their use. Overcome this issue can also give advantages to automotive manufacturers.