The Main Players of the Automotive Manufacturing Industry - Research Paper Example

Each of those countries has more than one motor vehicle brand and each of those brands significantly contributes to the economic development and status of its mother country. The presence of a constant market for the automotive industry is a very fundamental element in establishing efficient and effective economic performance and in ensuring that the companies continue thriving in this fast-changing and extremely competitive industry.

China imports the highest number of units of cars annually, which is estimated at 2,206,929.0 units of automobile vehicles (Williams and Donnelly 2012, p.21). Germany also imports 19,640 cars, 215 trucks and 8,152 parts which make a total of 28,007 units. Additionally, Japan imports 29,977 cars, 580 trucks and 15, 242 parts and this makes the total of 45, 799 units of automobile vehicles imported annually (Williams and Donnelly 2012, p. 28). On the other end of the spectrum, China seems to be one of the best auto bazaars in the world. Generally speaking, China has the highest population growth around the world with an estimated current population of about 1.4 Billion people; and for this simple fact, they potentially can well be the major market for any company that wants to pursue the international and global quest.

China does not only have a huge population size but its economy is growing at the highest rate than any other country or region around the world; hence it is an attractive market to many multinational companies (Hilmersson and Jansson, 2012). China has a favourable environment and a relatively stable political structure, which is also good for businesses because those are simply enabling factors that contribute to carrying out effective and streamlined business activities. Furthermore, in 2011, China accounted for 4.6 per cent of the worldwide car export destinations as close to 850,000 vehicles were shipped to China then (Gokmen and Ozturk 2012, p.85). This is due to China’s growth rate which jumped up to 7.8 per cent becoming the highest rate anywhere around the world, not only that but this rate was expected to grow even further to an astonishing 8.2 per cent by 2013 (Thornton 2013, p.9). These numbers give an insight into the opportunities abundant within the Chinese market for ABC Ltd to potentially capitalize on.