Feb 7th, Economics of the Industry

Q) What drives revenue growth in this industry (i.e. more units sold, expanding geographic reach, lower costs for manufacturing, etc.)?

Well first of all, almost all of the companies(not just only the automobile companies) gain their profits by selling more of their products to customers.
This also applies for the automobile companies as well. They tend to sell more
and in order to do so, they would have to meet customer's demands for it.

Revenues for car industries can be sorted out in many different categories.
The interesting part is that the revenues can differ from its many different
environment factors. Therefore, companies will try to follow the trend of the
changing demands for consumers.

As we know, nowadays we can see a lot of electric automobiles being produced since consumers and the society concerns significantly on environment factors. To meet the current trend, automobile companies would try to maximise their revenues by considering the today's trend as well.

There was an interesting article about the German automotive company 'Mercedez-Benz'
is shifting its trend to produce batteries. Regarding how important the automobile companies affect towards German economy, it is surely interesting to see how and why
the Mercedez company is changing their traditions towards electricity rather than their own gas based engine.

It would be interesting to see the result, within 10-15years from now and to see
whether it was a correct decision to step into the electric industry or not!

http://www.asiatoday.co.kr/news/view.asp?seq=443177