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Future of mobility

By Niranjan Mudholkar,

Added 10 January 2014

As automakers consider ways to grow organically, technology leadership could be critical to the survival of a company, according to a new report from KPMG. Excerpts...

In this year's survey, respondents are increasingly optimistic about BRIC manufacturer increasing export volumes, with 44 percent confident that China will exceed two million vehicles within two years. Those that predict India will export one million cars within two years have also increased to 38 percent.

The greatest growth potential for BRIC OEMs is considered to be the biggest in South East Asia according to the survey, whereas Western Europe and North America continue to be largely off-limits for BRIC manufacturers. A greater proportion of respondents feel that BRIC auto companies have good growth opportunities in Africa and Middle East.

Nevertheless, that outlook may not materialise as quickly as some respondents predict. "While the survey respondents are optimistic, this scenario may not play out in some BRIC countries where the quality levels of domestic cars are not on par with the standards of Western counterparts. To export into more mature markets, the brand perceptions and distribution networks would have to improve significantly," noted Meyer.

Sales are expected to surge in BRIC countries, as seven out of the 10 top OEMs expected to grow in the next five years will come from BRICS countries. For example, 66 percent of respondents predict that Russian automaker Avtovaz, will be among the top three OEMs to gain market share, moving up from 21st place in the 2013 KPMG auto survey.

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