PORTER’s FIVE FORCES ANALYSIS FOR AUTOMOTIVE INDUSTRY

1. A. THREAT OF NEW ENTRANTS Barriers to new entries • High capital investment ( Funds needed to manufacture machinery , plants , technology) • Brand Loyalty • Harsh regulations • Economies of scale Likelihood of new competitors • Moderate : Established competitors influence but electric vehicles (EVs) invites new entrants

1.1. B. BARGAINING POWER OF SUPPLIERS • Key suppliers : Raw material suppliers (steel , aluminum, plastics and rubber) Component Manufacturers ( Suppliers of electronic components, batteries and semiconductors.) • Influence : High because limited suppliers for critical components can lead to increased prices.

2. C. BARGAINING POWER OF BUYERS • Customer influence:Price sensitivity, Switching costs, Demand for features ( e.g, infotainment system , safety features.). • Impact on supply chain High pressure : Manufacturers may adapt to customer preferences and competitive prices.

2.1. D.THREAT OF SUBSTITUTES • Public transportation( buses , subways , trains. • Ride-sharing services ( uber and lyft). • Bicycles and e scooters. Impact : Moderate as availability of alternatives can force buyers to switch their demand.

3. E. INDUSTRY RIVALRY • Level of Competition High :Many established players ( for example; Toyota , Volkswagen , ) compete fiercely on price ,quality and technology • Innovation pressure • Market Saturation • Operational Dynamics