With advancing technology, the automotive industry is becoming a good opportunity to invest, especially in the developing countries since people are buying automobiles. Automotive suppliers manufacture goods that are used as automobile parts or in the process of manufacturing other automobile parts leran more from this site.
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 major automobile parts includes engine parts, electrical parts, and spark ignition and parts.
It is important to consider your area of interest based on your knowledge and capability and also the capital investments before deciding to start your investment. 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. It is good to find a mentor before investing in this industry who can brighten you on how to source funds from banks get additional technical knowledge since this two components are not available in most developing countries although they have good manufacturing capabilities leading to a lot of imports culminating.
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 starting capital required to purchase land, buildings, capital goods, and raw materials is very high, and if you have doubtful financial background it makes it very hard for the banks to finance your investment, and this is the major reason why developing countries scare their citizens from this kind of investment. In most third world countries good infrastructure is only limited to towns leaving people from local villages in a situation that they cannot use automobiles or rather no business can go on using vehicles, and when more parts become unopened, the automotive industry is not expanding because their market is limited.
The issue of counterfeit is giving many suppliers in the developing countries hard times since clients need to be convinced that your parts and components are original. Sometimes profits are lost in the process of lowering prices of your automotive parts in an attempt to cope with the strong competition and get a good market.