J.D. Power Expert Offers Insight on the Shift in the Global Automotive Industry

Tim Dunne

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.

A few highlights about the Asia-Pacific market are excerpted from “The Changing Landscape of the Global Automotive Industry; A Global Shift in the Balance of Power:”

• In 2013, LMC Automotive (J.D. Power’s strategic partner) expects the Asia-Pacific region to account for 36 million light-vehicle sales, representing 43% of the world’s total.

• By 2020, the region could account for 56.1 million units, or 48% of global light-vehicle sales, according to LMC.

• Two key forces underlie the strong growth forecasts for the world’s largest emerging markets. These are the liberalization of industrial and market regulatory policies and the increasing ability of large and underserved populations to purchase vehicles.

Brazil-Sao Paulo• 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.

For more insight about the world’s automotive industry, please contact Tim Dunne or click on download the complete discussion paper.


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