Labor – While robots and machines are playing vital role in the making of vehicles; there are still substantial labor costs in engineering and designing automobiles.
Materials – Ranging from steel, seats, aluminum, tyres, dashboards, etc. are being purchased from suppliers.
Marketing – Automobile industrialists spend hefty amounts on printing and advertising every year. Moreover, they invest a lot in market research to cater latest consumer trends and preferences.
The important areas of auto parts castings manufacturing are-
- OEMs – Original Equipment manufacturers– the big auto manufacturing companies do build some of their own products, but can’t manufacture every spare and casting part that fits inside a new model. Companies in automotive industry manufacture everything including handles and seats.
- Replacement Parts Distribution & Production – Such parts are replaced once the buyer bought the vehicle. Few examples of products of this area are- air filters, replacement lights, and oil filters.
- Rubber Fabrication – This area covers hoses, tyres, belts, and every other part that includes use of rubber.
What does analyst says?