With developing infrastructure in the developing countries and more people joining the middle class automotive industry is one of the industries that are expanding very rapidly making it a good opportunity for investment. Automotive supplier can be defined as the companies that manufacture goods to be used in the manufacture of automobile parts or used as the automobile parts such that these goods are supplied directly or indirectly to the Automobile Manufacturers.
Automotive suppliers in the narrow sense produces parts and components that are automotive specific while automotive suppliers in the broader sense produces parts and components that are not automotive specific in nature. Starting an automotive manufacturing company is a great idea based on the factors mentioned above though this sector is facing a lot of problems such as stiff competition and rising prices of raw materials. Automotive parts manufacturers deal with a variety of parts that they manufacture such as engine parts, breaking parts, spark ignition and parts and body and chassis here!
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. Also consider the segment of the industry you want to major in such as heavy machinery vehicles and whether you want to produce automotive specific parts or general parts that can be used in the whole industry. 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. Although this opportunity is very healthy for investment, starting and running capital is the big issue especially if you cannot secure a loan from banks it makes it very hard for any single person to make such an 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.