They may still be considered “emerging” markets, but China alone hs already laid claim to being the world’s largest automotive market and, according to a new report, just the four so-called “BRIC” countries alone will soon account for a full one of every three global car sales.
Competing in Brazil, Russia, India and China won’t be easy, warns the study, by he Boston Consulting Group, but carmakers and suppliers who try to survive in only the major industrialized markets will find it increasingly difficult to survive.
“This is a radical shift,” said Xavier Mosquet, head of BCG’s Detroit-based automotive practice. “By 2014, one-third of the world (demand) will be in those four markets.”
In 2007, those four countries generate sales of 15 million passenger cars. The number srged to 19 million last year, even as the developed markets of North America, Europe and Japan saw sales tumble. By 2014, the BCG study anticipates BRIC volumes will rise to a collective 25 million, while the industrialized markets will barely recover to pre-crisis levels of around 55 million.