In this article, we will discuss the business sectors of the automotive industry. We will understand the main sectors of the automotive industry and the role they play and their impact on the industry. The major business segments of the automotive industry are suppliers, car manufacturers, and car dealerships.
Pillars of the automotive industry:
The automotive industry can be divided into three business sectors which form the pillars of the industry. The three sectors of activity are:
Car and automobile manufacturers:
Companies in this industry manufacture chassis for automobiles and light motor vehicles and assemble final automobiles and light motor vehicles. These vehicles include passenger cars, pickup trucks, sport utility vehicles (SUVs), crossover utility vehicles, shuttles and vans. Many parts are acquired from many different suppliers and ultimately assembled by the automaker. They use these parts to build vehicles and the assembled vehicle is sold under their brand names. Automakers produce and sell light vehicles, such as passenger cars, vans, and pickup trucks. They also sell heavy vehicles, such as trucks, transit buses, school buses, and military vehicles.
Industry products:
- Cars
- Pickups and SUVs
- Vans
- Trucks
- Transit buses
- School buses
- military vehicles
Industry Activities:
- Manufacture of passenger cars, light trucks, sport utility vehicles and vans
- Manufacture of chassis for passenger cars, light and utility trucks and vans
- Manufacture of electric automobiles for road use
- Hearses mounted on own chassis
Manufacturers of automotive parts and accessories:
Companies in this industry manufacture automotive batteries, parts and accessories other than engines, engine parts, tires, bodies and chassis. Motor vehicle assembly is not included in this industry. Manufacturers generally supply parts and accessories to original equipment manufacturers (OEMs) for use in manufacturing complete motor vehicles or for replacement parts at OEM dealerships. They also supply parts to the aftermarket.
Suppliers are part of a very complex supply chain that transforms raw materials and components into ready-made automotive parts that are then delivered to automotive manufacturers. The supplier sector also includes spare parts, spare parts and rubber manufacturing companies.
Industry products:
- Electrical and electronic components
- Steering and suspension
- Braking systems
- Transmission and powertrain
- Seats and interior trim
- Metal stamping
- Air conditioning, airbag, wheel and all other parts
Industry Activities:
- Automotive electrical and electronic part
- Motor vehicle steering and suspension part
- motor vehicle braking system
- Automotive vehicle transmission and powertrain part
- Motor vehicle seat and interior trim part
- Stamping of automotive parts
Car and Auto Sales / Car Dealerships:
This industry is involved in the retailing of new and used motor vehicles primarily through dealerships, commission agents, and car auctions. Products sold in this industry include passenger cars, SUVs and light trucks, heavy trucks, buses, recreational vehicles, and specialty vehicles like ambulances and fire trucks. Retail sales of motorcycles, mopeds and bicycles are not included in this industry.
Car dealerships distribute finished vehicles to customers. They trade in new vehicles and there is also a huge demand and market for used vehicles. These dealerships can deal in new or used or both. Typically, dealerships also provide additional services to vehicle owners, such as vehicle maintenance services and spare parts. Some dealerships also arrange financing options for buyers.
Industry products:
- Cars
- Sport utility vehicles and pickup trucks
- Light commercial vehicles
- Heavy trucks
- The buses
- Recreational vehicles
- Specialized vehicles
Industry Activities:
- Sale and service of cars and light trucks
- Sale and service of heavy trucks
- Sale and service of specialized vehicles
- Bus sales and service
- Sale and service of vans and other utility vehicles
- Sale and service of recreational vehicles