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“Last Frontiers” Poised to Make up 20 Percent of Global Auto Sales by 2020

Developing Countries Key to Long-Term Sales for Automakers.

by on Oct.23, 2013

If Toyota wants to remain the top automaker worldwide, it needs to focus on growing sales in developing markets.

The auto industry’s “Last Frontiers” around the globe are in four regions spread across South America, Africa and Asia where car sales will grow faster than in China between now and the end of the decade, according to a new study by the Boston Consulting Group (BCG).

Car sales are set to explode in the Andes Region, North Africa, the Middle East – where Iran and Saudi Arabia are poised to become substantial markets – and in Southeast Asia where Indonesia vehicle sales are growing.

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All four regions have been scared over the years by terrorism, cycle of economic boom and bust and acute poverty. Nonetheless, the economies in all four regions are expected to grow at a pace that will sustain rapid growth in car sales, noted Xavier Mosquet, senior partner in charge of BCG’s Detroit office. (more…)

62 MPG Standard Could Add $10,000 to Cost of New Car

New study warns of sales collapse, loss of jobs.

by on Jun.15, 2011

To save fuel American motorists might have to spend heavily on new automotive technology, warns a new study.

With federal regulators studying the possibility of raising the Corporate Average Fuel Economy, or CAFE, standard to as much as 62 miles per gallon, a new study warns that such a move could increase the cost of the typical American automobile by as much as $10,000.

The report, by Ann Arbor, Michigan’s Center for Automotive Research, or CAR, also warns that annual automotive sales could tumble by as much as 5.5 million units, with motorists choosing to hang onto their existing vehicles longer rather than pay a steep price hike that will be difficult to make up in fuel cost savings.  In turn, said the CAR study, that could cost as many as 265,000 U.S. jobs.

“The risk,” warned the new report, “is serious.”

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But the new report is sharply contrasted by another study released this week which found that it might cost as little as $2,000 to adapt to a 62 mpg study, largely by adopting new technology to improve the time-tested internal combustion engine, rather than trying to switch to more advanced battery or hydrogen propulsion systems.