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A guide to auto business

When speak about auto business we are referring to the automobile industry as a whole which includes all businesses related to the making of an automobile. Auto business includes businesses involved in making vehicles like cars, trucks,bikes and engines, auto parts or components, bus manufacturers, accessories, auto tools, etc. The automobile industry is a multibillion dollar industry and is spread all over the world with main markets being Europe and America but markets such as India, China, Russia and Brazil are fast emerging as key markets with auto giants like Toyota, GM, Volkswagen and luxury brands like Rolls Royce, Alfa Romeo and Ferrari all setting up manufacturing or marketing presence in these countries.

So why are these markets so important recently? Well an affluent middle class in an economy will be the driving factor for spending and as middle class families in China and India start to earn better wages their spending power is on the rise. Vehicles like cars have always been regarded as one of the desirable object people would like to posses and an increasing number of families want to own a car may be even two vehicles is quite common these days. As markets in Europe, Japan, Australia and America gradually slow down in terms of sales emerging markets present multinational automobile companies with a chance to expand and remain in business. This means there is a huge market for automobiles that is waiting to be tapped and wherein an opportunity lies where future business growth is possible.

The great thing about the auto business is that in needs auto part markers and other supplies for both finished products and raw material. Why is Detroit considered to be the base of vehicles manufacturing in North America, it is because all auto manufacturing units are present there but more importantly ancillary units of major auto part manufacturers and another auto business owners are all present in Detroit itself. This facilitates in cost control and also means vendors for a particular auto manufacturer know that they will receive constant business over a number of years.

There are many aspects of an auto business, for all kinds of vehicles you require lighting at the tail lamps and at the head lamps. Earlier the tail & head lamps cluster used just small bulbs but today the lighting cluster is made of clear glass and uses halogen lighting for greater visibility enhancing the night driving experience. Another of the main auto parts that feature prominently in every vehicle are auto glass. There is one in the rear and one at the front but you also have window glasses on the doors of the vehicles. For the carís window and wind shield you have tinted glasses that are seen in almost all cars and SUVs these days. Though US law does not allow dark tinted glass but light tinted glass are common as they help keep the heat out of the vehicle and aids in keeping cabin temperature cool.

Similarly there are some other aspects of the auto aspects of the auto business that you should consider before arriving at a decision regarding what auto or vehicle business are of your interest. If you are planning to enter the auto parts business and do plan to make a substantial investment then you can start with auto tools business. Auto tools are a huge market because every car, truck, bus, motorcycle owner needs proper tools for vehicle repair and maintenance. Auto tools and equipment business is one of the auto businesses that can be started with a lowest investment and can grow to become a major industry.

When speaking about the auto industry then you cannot ignore auto accessories. Auto accessories forms a huge part of the auto business. From central looking, spoilers, body kits, fog lights, tries, brake rotors etc the list is unending. Many people are avid car fanatics and they will splurge on auto accessories immediately upon buying a new car. Amongst the major auto accessories are alloy wheels even auto accessories are bought when car owners would like to give the car a facelift so that it seems like a new one.

From a complete business perspective this should give you an idea of what kind of money is involved in building an automobile manufacturing unit. Volkswagen, Europeís largest car maker recently opened a new auto parts manufacturing plant in Jacksonville, USA at the cost of $30 million. It has called its other vendors plus auto tools and equipment supplies to set base within this acquired land so that production can be more effective and costs be maintained at its lowest level.

Reading the above you know that auto and vehicle manufacturing is not a low investment business and everything auto part, auto component, lights systems has to be built with precession or else it could mean millions of dollars worth of loss for the company. In recent years major auto companies like Toyota and Honda and General Motors have had to recall some of their cars because of defects that were identified after the sales were made resulting in a high degree of customer dissatisfaction.

Also the emphasis of all business working within the auto industry is shifting towards greener technology. With emission norms around the world set to become more stringent auto manufacturers are forced to revolutionize technology to meet these norms or face a ban in countries from selling their products. This is where engine technology is coming to the fore; more fuel efficient engines are the ones that will make it to the car factory. Car manufacturers are using more of aluminum in making the body of the car so that the car weight can be reduced.

Auto manufacturers have made vehicles like hybrid cars, these cars use normal fuel technology and also are fitted with light weight high power batteries. When you turn on the vehicles engine some of the power generated is stored within those batteries and whenever you choose you can switch over to using the stored power to run the car thus saving on fuel consumption. Bio diesel is also amongst the fuel technology that is gaining in prominence across the world.

If you are considering starting your own auto business then you have to consider the various cost factors involved in starting such a business. Starting your own auto dealership is much more expensive as against starting an auto parts dealership. At the same time before entering the auto business you should conduct a feasibility study about market conditions and whether such a venture will yield enough profits for you to break even and what kind of period is required for the business to break even. If you have the finance for the business or will you have to arrange a loan for the business.

Apart from auto & auto parts dealership you can also set up a manufacturing for auto parts, auto accessories and auto glass making. You can also open an auto accessories retail store. If you have ever visited an auto accessories store then you would know that auto accessories shopping is something that owners of vehicles regularly indulge in. Be it buying a new music system for the car or shopping for spoilers to be fitted at the rear of the car they just love shopping for auto accessories. If you can source the right products then this could be a fruitful business venture.

Useful External Resources:

Lexus : Official UK site of Lexus Company : The Leading site for New and Used Car Buyers in the UK
BMW Parts: Auto parts online supplier in Germany
Lease Bam: Compare business vehicle leasing companies from UK
Lease Audi Car: Place to find audi leasing from UK

Related directory categories

Auto Electric
Auto Lights
Auto Testing Equipment
Auto Insurance
Auto Rental
Auto Repair Service
Auto Detailing Equipment
Vehicles Shopping
Auto Detailing Services
Auto Accident Lawyers

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