Factors that will drive growth in the sector
A number of economic factors influence interest rates, disposable income, unemployment rates, retail price index (inflation), gross domestic product (GDP), and exchange rates. These factors have a profound impact on businesses.
Social factors include the cultural aspects and include awareness, population growth rate, age distribution, career attitudes and emphasis on safety. Social factors affect the demand for a company's products and its business models. As a result, companies may alter their operations in order to comply with these social trends.
Technological factors include ecological and environmental aspects, such as research and development, automation, technology incentives, and the pace of technological change. A technological shift also may lead to a rise in costs, quality, and innovation.
The internet has had a huge impact on the automotive industry, as well as every other industry in the world. Business-to-business marketplaces have brought many benefits to the industry due to the Internet, such as greater efficiency and reduced costs.