What are the key macroconomic variables that affect the auto industry?

Answer 1

Around half of all new cars are bought by consumers, so consumption is a big one. Most teh remainder are bought by businesses (company cars, delivery sedans and wagons etc), where they comprise part of business investment. Therefore, C and I (out of C+I+G+X-M) are the most important.

That said, governments do purchase cars, many cars are exported and many are imported so G, X and M are also important.

Some other macroeconomic variables you might want to consider are the exchange rate (it affects how cheap/expensive) imports are and the cost of imported parts for those that are assembled locally (almost every car in the world uses at least some parts from another country).

If you are also interested in second round effects, employment and unemployment matter because they influenxce how much income people have to spend on consumption and investment.

Answer 2

Well, i presume you're word "macro" means the world at large, right?

That sums it up, I think. No matter what it is, if it can be made somewhere else cheaper, it will be.

Answer 3

yup