arge amount of capital required
•High retaliation possible from existing companies, if new entrants would bring innovative products and ideas to the industry
•Few legal barriers protect existing companies from new entrants
•All automotive companies have established brand image and reputation
•Products are mainly differentiated by design and engineering quality
•New entrant could easily access suppliers and distributors
•A firm has to produce at least 5 million (by some estimations) vehicles to be cost competitive, therefore it is very hard to achieve economies of scale
•Governments often protect their home markets by introducing high import taxes