What is Auto Industry Analysis?

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  • Written By: D. Nelson
  • Edited By: M. C. Hughes
  • Last Modified Date: 29 October 2018
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The auto industry describes all of the businesses and organizations that produce, distribute, sell, and market automobiles. Many economic experts believe this industry to be one of the most profitable industries in the world, and because revenue for this industry is so high, it has a very large impact on national and international economies. Some of the components of auto industry analysis include performing market research, tracking auto industry trends, and gauging auto industry competition.

Market research is an important aspect of auto industry analysis. This kind of research is often uses surveys to allow consumers to state their preferences, expectations, and needs when it comes to automobiles. Specialists who perform market research may categorize consumers by factors such as income bracket, age, and location. Companies involved in this industry often use this research to better market their products, determine pricing and inventory, and make long-term business plans and strategies.


Another important aspect of auto industry analysis is gauging trends that can allow auto companies to make profitable decisions regarding products they introduce and projecting factors such as consumer interest. As in any industry, the auto industry is susceptible to different trends that may alter which products are most appealing to consumers. Sometimes these trends are created by companies introducing novel products. Other times, such trends can be created by clients in response to economic, cultural, or ethical issues. Examples of trends that might impact the auto industry include consumer interest in energy-efficient cars or in sport utility vehicles.

Most companies need auto industry analysis to understand the behaviors of their competitors. An analyst might be responsible for learning about developments being introduced by competitors, as well as learning about sales and new markets. Using the information gathered from competitor behavior, an auto company might lower prices to attract more customers or may change a marketing strategy to respond to the campaign of a company with which it is competitive.

Auto industry analysis normally requires specialists in this field to use a long range view of trends to create outlooks. An auto industry outlook is a projection of how various aspects of the industry will change over a number of years. An analyst might use data and statistics from history in order to find common economic and financial indicators in the present to make predictions regarding a number of factors, such as consumer spending habits, potential prices, and technological advances.



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