Sound Advice for Global Automotive Players

Market Wired

The Boston Con­sult­ing Group issues a report pro­ject­ing that automak­ers must reach beyond the cur­rent region­al clus­ters if they want to remain on top in glob­al sales.

Find out more about the report’s pro­jec­tion look­ing ‘Beyond BRIC’.

The Beyond BRIC mar­kets — the ris­ing auto­mo­tive mar­kets emerg­ing behind the quar­tet of Brazil, India, Rus­sia, and Chi­na — offer the last great growth oppor­tu­ni­ty in a world in which estab­lished mar­kets are large­ly char­ac­ter­ized by stag­na­tion or low growth and the key stakes have already been dis­trib­uted in the BRIC mar­kets. That’s one of the key find­ing in a report released today by The Boston Con­sult­ing Group (BCG).

Four Clus­ters of Oppor­tu­ni­ty

In the report, Nick­o­laus S. Lang, a senior part­ner and coau­thor of the report, and his coau­thors iden­ti­fy four clus­ters of oppor­tu­ni­ty for OEMs and sup­pli­ers based on an analy­sis of 88 Beyond BRIC mar­kets:

  • The ASEAN Nations. This clus­ter includes many of the mem­bers of the Asso­ci­a­tion of South­east Asian Nations such as Indone­sia, Malaysia, and Thai­land. It is pro­ject­ed to have annu­al new-vehi­cle sales of 4.6 mil­lion by 2020, mak­ing it larg­er than the pro­ject­ed Russ­ian mar­ket of 4.4 mil­lion.
  • The Emerg­ing Mideast. This clus­ter — which includes Iran, Sau­di Ara­bia, and Turkey — will boast up to 5.8 mil­lion new-vehi­cle sales in 2020, over­tak­ing Brazil’s pro­ject­ed 5.2 mil­lion.
  • The Andeans. This clus­ter — which includes Argenti­na, Chile, and Colom­bia — has 2.9 mil­lion new-vehi­cle sales pro­ject­ed for 2020, mak­ing it near­ly the size of the Ger­man mar­ket (at 3.6 mil­lion).
  • The North African Belt. This clus­ter — which includes Alge­ria, Egypt, and Moroc­co — is pro­ject­ed to have 1.2 mil­lion new-vehi­cle sales by 2020. Although it will remain com­par­a­tive­ly small, this region is a poten­tial site for promis­ing local­iza­tion by OEMs — and the gate to Africa.

“These region­al clus­ters should be on the growth list of every OEM and sup­pli­er with ambi­tions to be a tru­ly glob­al play­er,” said Thomas Dauner, a senior part­ner and coau­thor of the report — the fourth in BCG’s Win­ning the Local­iza­tion Game series.

 

 

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