Europeans are known for their highly urbanized and modern way of living. With the exception of the United States, it is the most lucrative market for such modern conveniences as the automobile.
The Europe auto market is a common destination for automobiles from American, Asian as well as European car manufacturers. The result is the variety of automobile brands and models that is not seen on any other part of the world. In fact, it is well known that there are auto manufacturers who are producing vehicles that are intended for the European market alone. Such models are so exclusive that they are not even sold on their own country of manufacture.
During the previous three decades or so, the Europe auto market which was previously reign exclusively by European car manufacturers, was introduced to a range of American and Asian automobiles most notably Japanese. These autos not only competed against European makes, but also were also able to capture a large segment of the auto market. This market encroachment from non-European entities was not limited to the automobile industry but was also apparent in other European markets as well. The threat that these economic activities pose to Europeans was such, as to provoke them to unify as one banner and form the European Union or EU. The union aims to achieve a European autonomous economy with a common objective and a common currency, which is the Euro.
With the unity, the Europe auto market was able to gain some grounds against outside competition, and establish a more competitive stance. The commonality gave them a stronger position on the bargaining tables. Nowadays, they are able to dictate their own terms and conditions, which were previously very lax to accommodate outside auto manufacturers that were seen to save a faltering European economy. Such an accommodation proved to be their undoing when Japanese, Korean and American automobiles were able to dominate their respective market niche.
Recently, the Europe auto market is again on its toes. Local market restrictions forced by the world financial crisis were imposed to protect some economies. At the same time, previously restricted territories were opened up to accommodate the automobile sector. This brought the former communist core of the Union of Soviets Socialist Republic to the attention of various automobile manufacturers.
Today, Russia is the most lucrative Europe auto market in the region. Because of the very strict policies imposed by their former communist masters, the Russian people’s knowledge of automobiles was restricted to the Zil cars. These automobile were manufactured by the state, which only the elites have the opportunity to own. With the freedom brought about by the fall of communism, the Russians were able to purchase and own any automobile that they want. The Russian demand for the vehicles created a vacuum in the country, which various automakers are only now beginning to fill up. The resulting market brought the country more revenues and gained for it some much needed economic progress.
