Flux and Shift Surrounds Global Auto Industry

J.D. Power blog

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.

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