Required fields are marked *. Its market cap has surged to around $400 billion in 2020, which is the highest of all the automobile Brand recognition helps the company to introduce new products to the market more easily and with fewer costs. 1. Companies must rapidly and efficiently adapt to this evolving market, and overcome the challenges that have developed within their industry as they continue to expand and evolve according to the market. Slow Economy: Many economic situations such as sudden unemployment, the pandemic (recent covid-19 situation), etc. The brand is also a strength in this SWOT analysis of the automotive corporation. This also implies that there will be a rise in competition in the automobile industry like never before. Tesla will deal only in the higher-end market. If you want to find out more about the SWOT of Toyota, youre in the right place. Strengths Environmental awareness of Bangladesh Government Lower duty charge Table 1. In the US, while Teslas overall share in the automotive market is only 1.3 percent, its share of the EV market has grown to above 60%. Automobile Industry SWOT Analysis Competitors, Automobile Industry SWOT Analysis Strengths, Automobile Industry SWOT Analysis Weaknesses, Automobile Industry SWOT Analysis Opportunities, Automobile Industry SWOT Analysis Threats, Automobile Industry SWOT Analysis Overview Template, Conclusion and Recommendations for Automobile Industry, An Adventurous Tourism Industry SWOT Analysis 2022, Textile Industry SWOT Analysis 2023: A Cozy Report, Insightful Look: Pharmaceutical Industry SWOT Analysis 2023, SWOT Analysis for Food Business: A Food Craving Report, Exciting Discoveries: Hotel Industry SWOT Analysis 2023. According to Statista, Tesla delivered around 90,650 vehicles between April and June in 2020, which was around 2250 units higher than the previous quarter. It allows people an unimaginable lifestyle with luxury, freedom, and travel. In the light of low automobile demand overall and shrinking sales of nearly all automobile brands, Teslas sales in the second quarter of 2020 can be seen as a big success. The economic recession, increasing cost, and growing competitors are some of the main challenges in the industry. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. See our Privacy Policy page to find out more about cookies or to switch them off. While Tesla's overall market share in the US automotive market was only around 1.3% in December 2019, the company enjoys an enormous market share in the US EV market. Work to create consumer confidence and build long-term trust in the company. Automobile Industry needs to re-evaluate strategies and concentrate on global popularization. SWOT Analysis for Companies in the Automobile Industry Strengths The automobile industry is witnessing a higher growth rate. Its worth noting it here that fuel stations, vehicle repair and maintenance shops, and vehicle delivery services do not fall under the category of the automobile industry. After having incurred operating losses for the past several years now, it is seeing positive operating income. 2. The award is an endorsement of Teslas safety systems that Elon Musk often touts in the media and on social media. Teslas management can expect better performance and resilience in the global market for electric automobiles and energy solutions upon addressing the SWOT factors identified in this analysis. They can utilize these chances for their turn of events. However, limited global operations remain a weakness that, along with other issues identified in this SWOT analysis, Tesla Inc. must address to maintain international competitiveness and corresponding business growth and expansion. The automobile industry includes two-wheeler, four-wheeler, passenger vehicle and commercial vehicles. It is offering people the While the company has produced excellent results until now and is known as a highly innovative automobile company, it should maintain a consistent focus on innovation in the future and remain ahead of the competitors worldwide. It achieved a good performance in all six IIHS crash tests. Its market cap has surged to around $400 billion in 2020, which is the highest of all the automobile brands globally. 2. While Tesla has currently maintained its lead in the EV market, it is predicted that the company could lose its lead to VW, Renault, Nissan-Mitsubishi alliance, and Chinas Geely by 2025. The Model 3 earned the 2019 Top Safety Pick award from IIHS. In fact, theyre resisting its growth. Toyota is famous for its innovative culture. This SWOT analysis shows that Tesla has the potential to grow in the global automotive market despite aggressive competition. It makes only Electrical vehicles and that too for the higher end market. This strategic factor is based on the hierarchy aspect of Teslas organizational structure that facilitates centralized control of the corporation. In evaluating Tesla, an analysis of SWOT factors (strengths, weaknesses, opportunities, threats) provides insights on how the business can approach challenges in the industry. India is a well-recognized Automobile manufacturing hub worldwide because of its low-cost production. However, it is still too low as compared to most automobile brands with a global presence. So, while Tesla sales may have jumped in the third quarter of 2020, once sales again start picking up post-pandemic, shipments from other brands will also grow. It is an analytical technique that is used to determine and define several critical characteristics of a company: Strengths, Weaknesses, Opportunities, and Threats SWOT analysis. WebTo calculate the market size, revenue from the market sales of Passenger cars, light commercial vehicles and heavy commercial vehicles are considered. Charging a Tesla vehicle costs much less than gasoline. The impact of new firms is considered in this aspect of the Five Forces analysis. Tesla has focused on growing its supercharger and destination charger network. Many big companies are having an eye for those consumers. The density of superchargers is especially very high in the North American region. High employee turnover: The employee turnover in the automobile industry is found to be higher when compared to several other sectors. However, despite the pressure in demand, Tesla has seen its sales in the second quarter of 2020 rise compared to the first. Source: Ford SWOT analysis [3] (*data for Toyota is for the whole North America segment, which includes U.S., Canada and Mexico) U.S. is the second largest automotive market in the world and is the largest GMs market in terms of revenue. To maintain resilience despite changing industry conditions, Tesla needs to address the following threats relevant to this SWOT analysis: Automotive companies aggressively compete against each other. In the SWOT analysis model, this strategic factor is a weakness linked to Teslas marketing mix or 4Ps, and other strategies that emphasize exclusivity in distribution. It has also increased the sales of cars and vehicles and the growth in the industry is good for the business. Johnson and Johnson SWOT Analysis 2023: An Essential Report, Disney SWOT Analysis 2023: A Magical and Detailed Report, An Exhilarating Automobile Industry SWOT Analysis 2023, Twitter SWOT Analysis 2023: A Talkative & Detailed Report, Netflix SWOT Analysis 2022: A Binge-Worthy Report. SWOT Analysis Of Tesla. Expansion of market: Entering and expanding Asian and BRIC countries will bring upward demand in vehicles. The food acidulants market is valued at US$ 2.6 billion in 2023 and is estimated to reach a value of US$ 4.5 billion by 2033, registering a CAGR of 5.4% during the forecast period. Two limitations of the PESTEL tool acknowledged by Krol (2020) were that it is mainly a qualitative process that does not have underlying quantitative support and, as There are specific threats to Automobile Industries, but proper planning can help them to survive the situation. Automotive brand ranking by Interbrand. This also implies that there will be a rise in competition in the automobile industry like never before. We have dissected the SWOT analysis for companies in the automobile industry below: Tesla may still not be the largest automobile company in the world regarding car production and sales. It means that the vehicle should provide better mileage, fuel efficiency, and economical price range. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); About - Privacy Policy - Returns and Refund Policy. The SWOT Analysis of Automobile Reverse Logistics Development 2.1. SpendEdge, established in 2003, is one of the worlds leading procurement market intelligence companies. Tesla, Inc. (formerly Tesla Motors, Inc.) succeeds as an innovative business with global operations. With developed technology, this could bring out a huge market for industries. However, while Tesla continues to grow its foothold in the leading automobile markets stronger, there are also some challenges ahead. By combining different specialized strategic capabilities companies could bring a variety of offers to the consumer which could bring good sales for partnering companies. In the third quarter, demand has started picking up, but for the impact of the pandemic to fully go, it will take some time. Growth through diversification addresses some of the trends noted in the PESTEL/PESTLE analysis of Tesla Inc. Constant product innovation & technological advancement: With the advent of E-vehicles & alternative fuel such as Shell gas, CNG, and others, automobile companies are increasing R&D expenditure to drive the next phase of growth through the use of renewable sources of energy which may be solar, wind, etc. Changing lifestyle & customer groups: The increased availability of data and information, shift in consumer demand, and expanded regulatory requirements for safety and fuel economy will fuel the growth of this industry. Automobile Industry swot analysis offers the brightest part of the opportunities offered by the Automobile Industry. Nonetheless, Toyota uses its R&D budget the most effectively, spending just 3.6% of its total revenue on R&D, while Volkswagen spends 6.7%. Many customers often contact us with requests for custom business/market specific SWOTs, because they trust us. Strengths, weaknesses, opportunities, and threats (SWOT) analysis is also used a lot to analyze the situations. According to sources, Tesla sold more than 64,000 units in the US in the third quarter of 2020 compared to around 52,000 units during the same period in the previous year. During 2019, the costs of revenues of Tesla grew to $20.5 billion. The case of the solar roofs Tesla had promised is also similar. In this swot analysis, we will analyze the leading strengths and weaknesses of Ford Motor Company and the opportunities and threats before its business. Thats why theyre looking for global investors and suppliers to join the platform; it would expand the industrys growth. The increase R & D cost is decreasing companies profitability. After an in-depth study of the swot analysis of the automobile industry, weve concluded that the automobile industry is indeed the worlds most profitable industry. It means while Semis may become available for sales by the end of 2020, they will not be available in large volumes yet. In. During the pandemic, Tesla's performance remained much better than rival brands. Lets look at them: Efficiency: with the development of technology people are becoming more careful about efficiency levels. If Tesla has achieved stronger brand recognition without spending a fortune on its marketing, it is mainly because of its focus on innovation. Among the automotive companies, only Volkswagen spends more on R&D than Toyota.