Auto Industry Malaysia

Auto industry Malaysia is a booming industry which encompasses areas of activities from car manufacturing to dealing auto business with foreign countries. Auto industry Malaysia is one of principal producers and exporters of vehicle parts, components and accessories, which are widely accepted to most of leading countries of world. Foreign countries like Japan, UK, Thailand, Taiwan, Singapore, Indonesia, are major importers of Malaysia's cars. Leading automotive manufacturing companies like Mercedes, Suzuki, Ford, General Motors, Mazda, Nissan and Mitsubishi are using Malaysian automotive products and accessories because of their high quality and competitive prices. Survey report regarding auto industry Malaysia Market survey conducted by Business times, reveals that during 2007, sales of Malaysian vehicle reached 4,648 units with an overall growth of 13.8% and is expected to increase in coming years. During period of slowdown, government of Malaysia surmounted other competing economies by controlling inflation and eventually kept costs down. In year 2000, Malaysia auto industry exported US$274.2 million worth of automotive parts. Government policies regarding auto industry Malaysia Government of Malaysia ceaselessly trying to restructure their automotive industry market by encouraging to produce a large number of cars to meet growing demand of consumers. Government of Malaysia is also providing a 50% refund on excise tax for domestic automakers. Overall vehicle taxation structure is also going to be be changed. Tariff on vehicles, which are imported from other ASEAN(Association of South East Asian Nations) areas will also be lowered to 15% from 20%. Excise taxes will also be brought down. Leading automakers of auto industry Malaysia Some of leading automakers in Malaysian auto industry are Perodua, Perusahaan Otomobil Nasional Bhd., Malaysia's first national car project was Perusahaan Otomobil Nasional or PROTON. Malaysian car manufactures are

trying to meet demands of customers by providing reliable and competitive auto components and accessories.

India Auto Industry

How would India auto industry fare in 2009? In 2009 estimated rate of growth of India auto industry is going to be 9 percent. Auto industry in India has been hit hard by ongoing global financial recession. Sales figures of India automobile industry for December 2008 have shown devastating after effects of global financial slowdown. However, there is still hope for automobile industry of India in 2009 as there are certain factors working in its favor. India is blessed with a middle class, which is getting economically stronger with every passing day. This class is being touted as potential consumers for India auto industry in years to come. Indian economy has been, more or less, able to withstand tremors of global financial meltdown. Even though its rate of growth has slowed down considerably, there are hopes of an economic revival. Work force of auto industry of India is relatively well trained. All these factors indicate that there could be a decent future for India auto industry in days to come. India automobile market India automobile market is likely to be in good shape in 2009. Much of this optimism results from renewed interest being shown in India auto industry by reputed overseas car makers. Nissan Motors, which is a well known Japanese car making company, regards India automobile market as a global car manufacturing hub for future. Hyundai, a major automobile establishment of South Korea, has put in large sums of money in India automobile market. As per its estimates, India auto industry could become a major center for small car manufacturing organizations in future.

There are some other automobile companies of world who have shown interest in India auto market. Major names among these are General Motors, Skoda Auto and Mercedes-Benz. These companies have major plans lined up for India auto industry and are likely to invest a huge amount of money in India automobile market. India domestic auto industry India domestic auto industry has been passing through a tough phase in 2008 and such a trend is supposed to continue in 2009 as well. Leading members of India auto industry have forecast a difficult path in 2009. Shinzo Nakanishi, managing director of Maruti Suzuki, has said that 2009 would present them with a number of challenges. fitted greatly from China auto insurance policies. One example is Huatai Insurance Co, which generates 70 percent of its income from these policies.

Current scenario faced by the automotive manufacturers

The automotive industry is the industry that focuses on deigning, developing, manufacturing, marketing and selling the motor vehicles. In the year 2008, more than seventy million motor vehicles were produced worldwide including cars and other commercial vehicles. In the year 2007, the total number of new automobiles sold is more than seventy one million. The overall sales in the automotives are growing drastically. The markets in Japan and North America were stagnant during this period whereas South American countries and other parts of Asia experienced great increase in the number of total sales. The markets in Russia, China, Brazil and India were the ones showed most rapid growth. The number of automotives used is around two hundred and fifty in United States. The number of automotives used around the globe in 2007 was a whooping figure of 806 million. The overall usage of gasoline will come around 260 billion gallons per year. The number of automobiles is rapidly increasing, especially in countries like China and India. Most of the experts feel that the urban transport systems that are based on the transportation through car is highly unsustainable as they consume excessive energy and affects the health of the populations. This will also cause the decline in the level of services in spite of increase in the total investments in the transportation sector. However, the number people who would like to own and use cars are not

coming down. The government bodies around the world are focusing on the sustainable transport movement to overcome the harmful effects of increasing number of automobiles. Challenges faced by the industry The year 2008 witnesses the rapid increase in the oil prices. Because of this increase, industries including the automotive industry are experiencing a tedious combination of pressures in pricing. They are under heavy pressure because of the costs of raw material and change in consumer behavior and buying habits. The automotive industry is also facing tough competition from public transport sector. The sector is forcing the consumers to revaluate their decision of using private cars as the facilities offered by the public transport sector are improving greatly. The closing down of the automotive manufacturing plants will result in loss of employment for millions around the world. With the decrease in the number of plants functioning in the United States, China became the leading automotive manufacturer of the world. Crisis in the automotive industry The crisis in the automotive industry is because of the global financial downturn. The crisis greatly affected the automotive market in the European and Asian countries. However, the major impact was on the American automotive manufacturing industry. In addition to this, the industry was also weakened by the increase in the fuel prices. The car manufacturers are relying on the creative marketing strategies for overcoming this situation.

Even the companies are offering high discount rates to boost up the market. Better designs are introduced into the market too. Even the flagship models of the major manufacturers are offered in the market with heavy discounts. However, the automobile manufacturers are keeping their fingers crossed as they expect the crisis to end in the near future.