Flux and Shift Surrounds Global Auto Industry

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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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