Great Wall Motor Coursework Example | Topics and Well Written Essays - 4000 words

Great Wall Motor - Coursework Example In India, the automotive industry is a critical part of the economy. In 2013, one of the industry’s most powerful competitors, Audi, achieved a growth of 11% compared to 2012 (Business Today 2014). More specifically, during 2013 Audi in India managed to sell 10,002 cars breaching the limit of 10,000 sales on an annual basis, a limit that no firm has managed to pass up today, except from Audi (Business Today 2014). This achievement denotes the perspectives not just of Audi but also of all firms operating in the automotive industry of India. These perspectives should be taken into consideration by foreign investors who seek for profitable emerging markets but also by foreign automotive firms that are interested in entering the specific industry of India. The sales of top auto manufacturers in India are presented in the graph in Figure 1 below. A standardization of the level of sales between August 2012 and August 2013 is clear, a fact showing a delay in the industry’s gro wth for the same period. The performance of Indian automotive industry from Jan 2012 up to May 2013 is presented in the graph in Figure 2. In the particular graph the overall performance of the specific industry for the above period is presented, i.e. sales are not categorized by auto manufacturer. An important cWallenge that automotive firms in India have to face is the following: inflation in India is at high levels, with trends for a further increase; this fact has led to the increase of production costs in all industries, including the automotive sector. (Choudhury 2013). At the same time, due to the Weak Rupee, producers in all industries are not able to increase prices since such practice would further reduce their customer base (Choudhury 2013). Great Wall Motor would also have to face the specific cWallenge in case that it would enter the Indian