Economics of the Automobile Industry

The Automobile Industry is divided into two different sub-industry:
• Original Equipment Manufacturers (OEMs)
• Auto Ancillary
The Original Equipment Manufacturers (OEMs) manufacture and sell Passenger Cars, Utility Vehicles, Commercial Vehicles, Two Wheelers, Three Wheelers and Tractors.
The Auto Ancillary industry supplies the raw material and spare parts to the OEMs like crankshafts, suspension systems, shock absorbers, tyres and dashboards to name a few.
The Auto Ancillary industry consists of Tier 1, Tier 2 and Tier 3 suppliers that supply spare parts and raw materials to OEMs, Tier 1 and Tier 2 suppliers respectively.