5 Ways Cars Are Changing The Asian Economy

201504231017202746Automotive vehicles were first introduced in the west, but the east is quick to picking up with the pace of western car developers. In a span of a century, Eastern companies have leveled with their western counterparts regarding car sales and innovation in the automotive manufacturing industry. This means a lot to many Asian countries, especially those who benefit from the economic benefits of an agile production and skyrocketing sales. Cars continue to change the face and status of the Asian economy and here are five ways they are doing that.

Reduced Unemployment Rates

In case you haven’t noticed the car manufacturing industry in Asia has employed thousands of employees and has fed hundreds of families across this giant continent. From the design, planning, manufacturing, distribution, sales and maintenance processes, hundreds of job opportunities open to many Asian workers. The automotive industry employs not only sales professionals and factory workers but also engineers, chemists and professional accountants.

Increase in National GDPs

For countries exporting cars not only in Asia but to Europe and America as well, the revenue from car sales accounts for a huge percentage of the country’s net earnings. Two giant companies such as KIA Motors and Hyundai based in Korea have made massive contributions to the growth of the Korean economy with millions of units exported to other countries annually. The case is almost double in Japan as it is home to the big brands such as Nissan, Toyota, and Suzuki.

Better Transport of Goods

Never has there been a time where the transportation of products across places in one country has been easier than today. The improved infrastructure along with the new technology available for cars made for private and business use. The fast evolving technology available for larger vehicles made the transport of products within the country’s land territories much more efficiently.

11758-transport-competition-videomakersImproved Public Transportation Systems

Trains started to the west originally used to transport coal and other products. Trains then used to have engines powered by diesel or petroleum, but the Japanese have come to develop the bullet trains which are much faster regarding speed and more efficient in energy consumption using electricity from renewable solar power. The same technology can be seen in neighboring cities in China, Taiwan, Korea and some parts of South East Asia.

Increased Investments in other Industries

With the Asian players showing superiority in the automotive manufacturing industry, international investors have gained confidence that the same set of people can also become great innovators in other areas. This gave rise to the many Asian smartphone brands we are now seeing today. The advancements that Asia has made in car manufacturing have opened doors for its economy also to be noticed in its other aspects.

Cars continue to dominate the Asian economy, not only generating revenues for massive unit sales at the closing of each sales year, but also in the number of opportunities it provides for employment and investment from foreign investors. The Automotive industry has made Asia the powerful giant it is today.

High-Quality Public Transport Systems: A threat against Private Car Sales

nyc_taxi_ford_crown_victoriaMany environmental enthusiasts and non-profit organizations advocating against climate change have surfaced in the past decade. The increasing effects of global warming are now becoming apparent and felt in more ways and more places on the planet. People are now convinced that global warming is no longer a theory, but it is real and the threats it presents to human extinction is palpable. Environmental protection groups have suddenly risen to power now that governments are starting to recognize the need to address pressing environmental issues.

When something extremely bad happens such as the category five tropical typhoon that hit the Philippines in 2013, fingers must be pointed. The automotive industry had the most fingers directed at them for not developing car technology earlier that decreases the use of non-renewable petroleum to run their engines. They have received more blame from other economic and environmental issues as well. The economy crippling traffic slowly experienced around the world have been blamed on the automotive developers as well for not regulating the number of units sold in a year about the geographic location’s capacity to hold such some new cars.

Governments around the world with external pressure from environmental protection organizations scramble to find the solutions to this long-standing problem. The first solution thought of was to develop solar powered cars. The mismatch in the availability of sufficient solar power to meet huge demands quickly caused the project to end unless new discoveries and modifications are made to bridge the gaps in this technology.

With new technology for electric cars and solar powered cars facing gaps between the vision and the practical applicability aspect, the only feasible solution to governments across the globe was to carexercise their sovereign powers and use the law to regulate the purchase of private cars.

Asian countries such as Korea, Japan, and cities like Hong Kong and Singapore have worked on strengthening their public transportation systems to encourage people to use them instead of using their private cars. This creates two effects: first, traffic congestion is reduced with more people using public transportation and fewer people taking their private vehicles on the road; and second by reducing the number of running vehicles this move significantly reduces the amount of emitted gasses as well.

Western countries are also eyeing a similar move. Many experts are saying that this move could hurt the international economy if car sales drop, even by just a few hundred units. Depending on what the government’s priority is economy can be sacrificed to address environmental issues or the other way around. Whether or not the move to increase the accessibility of public transportation in western cities will cripple private car sales is yet to be determined. It depends on whether the public will see it as a move to improve their daily routines or as another attempt by the government to manipulate the things that they can and cannot do.