... In the case of demand forecasting in the automobile industry in developed countries, it can be done with a lot of precision as the demand follows a linear trend. However this becomes very difficult in the case of developing countries. Linear growth is virtually impossible to observe. There are periods when the actual sales are very different from what was predicted. In all developing countries car owners and purchasers are rich people by local standards, and a car is a luxury purchase. This is particularly true of initial car purchases in a developing country by the very affluent, by large business enterprises and by government authorities, so that prices tend to be almost irrelevant. Large luxury cars purchased and the saturation of this group of consumers is very high. As cars become more familiar and the road network improves, new and larger purchasing groups enter the market. Their exact nature and size ...

See this essay or coursework document in full right now