What is the downstream automobile industry, and what industries are there?

Downstream industries refer to industries that are at the end of the whole industrial chain, processing raw materials and parts, manufacturing finished products and engaging in production and service.

The downstream automobile industry has a wide range, which can be broadly extended to all automobile-related industries and services derived from the popularization of automobiles, such as automobile parts manufacturing industry, automobile credit, automobile insurance, road rescue, automobile sports, automobile maintenance and modification, automobile rental and so on.

Not all industrial chains have a smile curve, and there will be excessive supply and intensified competition in the upstream, and it is limited by the changes in downstream demand, so it is impossible to actively explore new demand or market, and it usually has obvious periodicity.

For example, in the upstream semiconductor chip industry of the whole electronic industry chain, there are high technical and financial barriers, and only a few manufacturers in the world participate in the competition. However, driven by the cold and warm downstream demand and the expansion of their own production capacity, the performance often suffers big losses and big gains. Therefore, companies investing in upstream industries should also choose the right time to enter.

Extended information:

Upstream enterprises and downstream enterprises are interdependent. Without the raw materials provided by upstream enterprises, downstream enterprises are like clever women who can't cook without rice;

if there are no products produced by downstream enterprises to put into the market, the materials of upstream enterprises will be useless. Therefore, upstream enterprises and downstream enterprises in various industries should share joys and sorrows, help each other and benefit each other, and survive and develop together.

In fact, upstream and downstream are relative concepts in the modern production industry chain, which have more detailed and wider application value than the traditional division of agriculture, heavy industry and light industry.

with the development trend of economic globalization, the correlation between industry and the whole social and economic development is constantly improving, and the relationship between industry and related industries is more encrypted and inseparable. Except for the production of some end consumer goods (such as some household appliances), most industries are upstream industries from one angle and downstream industries from another.