Automotive manufacturing is huge business producing around 80 million vehicles in 2007. This market has been dominated for the past 20 years by a number of firms that you can count on a single hand. Between them, the top 5 manufactures produce over 33 million vehicles accounting for over 40% of the total market. These companies are backed up by extensive investment and branding divisions that ensure the vehicles they produce are innovative and of high quality whilst consumers are saturated with the brand identity. This leads to a hostile environment for any wouldbe market entrant. Not only must they face a huge level of startup capital required to get an even modest vehicle manufacturing operation online but also the history, prestige and financial capability of the established firms.
With governments around the world deciding to take action on carbon emissions from personal vehicles by introducing strict emissions targets, a gap has been created in the market. Entrepreneurs have been continually commended for their ability to spot market openings and be quick out of the blocks to get their new products to market. It appears that this trend will be continued in the automotive industry as new firms lineup to get their piece of the electric vehicle pie. A window of opportunity exists for start-ups to establish themselves in the new technological market for electric vehicles which is predicted to grow rapidly in sales volume over the next 20 years. However, this window is quickly closing as the big manufacturers start to flex their muscles and turn their attention to the emerging market.
