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.