With advancing technology, the automotive industry is becoming a good opportunity to invest, especially in the developing countries since people are buying automobiles. Those companies that manufacture goods to be used as automobile parts or in the process of manufacturing automobile parts and supply these goods to automobile Manufacturers directly or indirectly are called automotive suppliers.
Automotive suppliers can be categorized into the automotive suppliers in the narrow sense who produce goods that are automotive specific parts and components and supply them directly to original Equipment Manufacturers (OEM) and the automotive suppliers in the broader sense who supply non automotive specific parts. Investing in automotive manufacturing like Mayco International is healthy in most developing countries, but it is facing some challenges such as competition and rising prices of raw materials, and yet they have to lower prices of their final products to keep them marketable. The most common automotive parts in the industry includes suspension and braking parts, drive transmission and steering parts and body and chassis.
This kind of investment if not well monitored it can cause great losses the same as the great profits it would bring if well monitored and therefore you should first find your area of interest based on your knowledge and capabilities and also the capital required for the investment to avoid starting an automotive part manufacturers company just to collapse in a matter of time. Of course it is not possible to supply the whole transport industry hence you must choose an area that you will supply and more importantly the parts you will supply to that segment. Always seek more about this investment before deciding to major in them and analyze them carefully.
In every business opportunity there are challenges and automotive parts manufacturing is not an exception and so these companies must be innovative or rather creative to face these challenges and standout as winners. The initial capital of buying capital goods, paying employees, buying raw materials and getting legal requirements such as licenses is very high which limits most people to join this sector. so check out for more info. In developing countries we have very poor infrastructure services especially in rural areas which are limiting the great use of automobiles and this in response limits the expansion of automotive parts manufacturing.
This sector is facing another great challenge of fighting counterfeit and assure their clients that their goods are of good standards and this is one of the major reasons why most people value imported automotive parts than the ones manufactured locally. In order to get out of strong competition and get some market of your parts, you must lower the price since it is the only bargaining power that you have.