The global auto industry is in flux with dramatic changes and growth in emerging markets—especially in the Asia-Pacific region, according to a white paper delivered by J.D. Power’s Tim Dunne.
Find out more about the insights offered in a white paper by this J.D. Power expert.
The global auto industry is in flux with dramatic changes and growth in emerging markets—especially in the Asia-Pacific region, according to J.D. Power’s Tim Dunne, director of global automotive industry analysis.
In a recent paper that has been published in several Standard & Poor’s publications, including CreditWeek®, Dunne discusses some of these changes and provides future forecasts and an outlook for the industry in terms of auto production, changes in technology and engineering, and the impact of these changes on the environment and the economy.
• This is particularly true in two Asia-Pacific markets: China and India, in addition to the countries of Brazil and Russia. These are four of the world’s most highly populated countries and among the 10 largest auto markets.
• An emphasis on foreign direct investment and the rapid development of export industries provided foreign currency reserves to help finance subsequent rounds of growth.
• These objectives worked particularly well in China and India, allowing many consumers in these less developed economies to quickly acquire the means to purchase vehicles.
Dunne sums up his outlook for the Asia Pacific region by suggesting, “We believe Asia looks bright. Sustaining growth is going to require continued development of advanced supplier networks and supply chain management.” He also says that these markets will need to improve vehicle distribution systems and upgrade their dealer networks, while making vehicle financing more widely available.
NOTE: The global auto industry is in the midst of dramatic growth and change, the likes of which it hasn’t experienced since the industry’s inception. While annual vehicle sales in the world’s mature auto markets have mostly plateaued, a new set of emerging markets — with larger and younger populations, rapidly growing economies, and low vehicle-ownership rates — have become the engine for growth. Read the full white paper here.