Study on future automotive growth markets and implications for

BRIC = B R I C ?
Study on future automotive growth
markets and implications for suppliers
May 2014
Contents
A. Looking back:
BRIC countries were the main automotive growth drivers of the past 10 years
3
B. Looking ahead:
Specific challenges for automotive suppliers in BRIC markets
10
C. Beyond BRIC:
New growth regions for the automotive industry
32
D. Conclusions
36
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
2
A. Looking back:
BRIC countries were
the main automotive
growth drivers of the
past 10 years
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
3
BRIC markets were the major growth driver of the global automotive
industry over the past decade
Light vehicle (LV) sales and production, 2002-2012 [m units, %]
CAGR
02-12
Sales
100%
RoW
Triad
56.6
79.5
+3.5%
21%
23%
+4.6%
41%
-1.6%
68%
BRIC
11%
2002
100%
RoW
81.5
22%
27%
+3.6%
+5.9%
-1.7%
67%
+16.4%
BRIC
2012
57.1
39%
Triad
36%
CAGR
02-12
Production
11%
2002
34%
+15.7%
2012
Note: Triad including Western Europe (excl. Balkan states), Japan, USA; "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
4
Within BRIC, China accounted for more than 70% of the additional
production volume during that period
Light vehicle production in BRIC by country, 2002-2012 [m units]
27%
73%
27.3
15.3
6.3
1.6
2002
B
1.1
R
3.0
I
C
2012
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
5
Of the world's top 10 OEMs, Volkswagen and Hyundai benefited most
from the BRIC countries between 2002 and 2012
LV sales: BRIC incremental volume and world market share with and w/o BRIC growth
World market share with and w/o BRIC growth
Volkswagen
11%
7%
Other 53%
∑ 22.5 m
vehicles
Hyundai
6%
Chevrolet
5% Toyota
5%
Nissan
2% 4% Ford
2%
3% 3% Fiat
Honda
Renault Kia
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
World market share 2012 (sales) without BRIC growth [%]
Incremental volume in BRIC, 2002-2012 [%]
12.0
7.5
Lost global market
share driven by
BRIC growth
(2002-2012)
7.0
6.5
6.0
5.5
5.0
4.5
Gained global
market share driven
by BRIC growth
(2002-2012)
4.0
3.5
3.0
2.5
2.0
2
3
4
7
6
5
World market (sales) 2012 [%]
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
10
6
However, three of the BRIC markets reached a turning point in
2013, with China the only exception
Light vehicle sales in BRIC, 2002-2013 [m units]
Russia
Brazil
+10%
3.6
-1%
3.6
1.4
2002
2012
2013
+10%
> Unstable
economic
environment
> Reduced local
customer
demand
2.9
-6%
2.8
1.1
2002
India
2012
2013
China
+15%
3.3
-7%
0.8
2002
2012
20.8
✓
2013
> Reduced
macroeconomic
growth
> High customer
demand for
vehicles
+12%
3.0
2013
+20%
> Lacking
infrastructure
> Limited
economic growth
18.6
2.9
2002
2012
> Weakness in
macroeconomic
conditions
> Political
uncertainty
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
7
Based on this market development, suppliers have to respond to a
set of questions
Key questions from the supplier's perspective
Bild
1. What will be the future
development in the BRIC
markets?
> How long will the downturn be in India and Brazil? Is
there a positive market outlook?
> Given the current political uncertainty, how stable will
Russia be in the future? What are the major OEMs doing?
> Will the Chinese market grow over the long term as
well? What influence will the government have?
2. Where will additional
future growth come
from?
Source: Roland Berger
> Are adjustments to global activities necessary to
participate in the new growth markets (GLOCAL)?
> What are the technology and product requirements in
these new markets?
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
8
Based on this market development, suppliers have to respond to a
set of questions
Key questions from the supplier's perspective
BRIC market development
> How will the individual BRIC markets recover/
develop in the short/medium/long term?
> More specifically:
> How long will Brazil's recovery take and
how will the political environment
develop?
> Will India get back on the growth path
after the elections?
> What will happen in Russia due to recent
turbulences and how will the market
develop over the medium term?
> Is China stable or is there a significant
risk of the market collapsing?
> What do these market trends mean for the
individual supplier's capacities/investment
policies?
Source: Roland Berger
Development of new growth markets
(outside BRIC)
> To what extent will markets outside the Triad
(Nafta, W. Europe, Japan) and BRIC
contribute to the future growth of the
automotive industry?
> Which of these markets should auto suppliers
focus on?
> What are the specific challenges for auto
suppliers in these markets?
> What do these market trends mean for the
individual supplier's capacities/investment
policies?
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
9
B. Looking ahead:
Specific challenges
in BRIC markets for
automotive suppliers
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
10
From a global and long-term perspective, BRIC markets will further
increase their world market share to over 40% by 2019
Light vehicle (LV) sales and production, 2002-2019 [m units, %]
Sales
100%
RoW
Production
56.6
79.5
103.4
21%
23%
22%
41%
Triad
104.7
22%
27%
25%
2019
33%
67%
43%
BRIC
2012
81.5
39%
Triad
11%
2002
RoW
57.1
35%
68%
36%
BRIC
100%
11%
2002
34%
2012
42%
2019
Note: Triad including Western Europe (excl. Balkan states), Japan, USA; "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
11
But we expect growth rates to slow down significantly by 2019
Light vehicle sales in BRIC, 2002-2019 [m units]
Brazil
Russia
+4%
+1%
+9%
3.6
3.6
4.3
3.6
+9%
2.8
2.6
2.7
2013
2014
2015
3.2
1.1
1.4
2002
2013
2014
2015
2019
2002
India
+13%
2019
China
+10%
+8%
3.0
3.2
+5%
+9%
5.3
+19%
3.6
0.8
2002
+4%
-1%
20.8
22.7
24.7
2013
2014
2015
29.6
2.9
2013
2014
2015
2019
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
2002
2019
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
12
Further growth in BRIC markets will be driven mainly by local sales
rather than by exports/international trade
Light vehicle net exports in BRIC, 2002-2019 [m units]
Brazil
Russia
0.2
-0.1
2002
2013
-0.4
2014
-0.3
2015
-0.1
-0.5
2019
2002
India
-0.7
-0.8
-0.8
2013
2014
2015
2019
China
0.6
0.7
0.9
0.8
2013
2014
2015
2019
0.1
0.0
0.0
2002
-0.8
2002
-0.2
-0.2
-0.2
2013
2014
2015
2019
Note: Net exports = Exports - Imports
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
13
B.1 Brazil
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
14
Brazil
We expect Brazil to return to growth after 2015, but local production
will grow by only 2-3% per year
Light vehicle sales and production forecast, 2002-2019 [m units]
Sales
Production
+4.2%
+0.7%
+9.0%
3.6
3.6
4.3
3.6
+7.7%
3.5
3.2
3.4
2014
2015
3.8
1.6
1.4
2002
+2.9%
-2.3%
2013
2014
2015
2019
2002
2013
2019
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger market model
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
15
Brazil
Overall, however, the Brazilian market will be characterized by
significant uncertainties
Key factors influencing short-/medium-/long-term LCV sales and production
Top five market
drivers
Short-term influence (2014)
Medium-/long-term influence
(2015-2019)
1 GDP development
> After reaching a low point in 2012/2013, low
GDP growth of 2-4% expected with
significant uncertainty
> Long-term growth above 2014 level expected
(>3%), but also considerable uncertainty
2 Disposable income
> Disposable income development expected on
GDP level at 2-4%, but also with considerable
uncertainty
> Further growth of disposable income on GDP
level expected with uncertainties analogous to
GDP forecast
3 Tax rates/import
duties
> High import duties for cars and parts, plus
high IPI tax (with reduction for OEM brands
with local presence)
> Tax and import rates expected to remain
high to protect local industry
4 Government
incentives
> Inovar-Auto (largely in place, but with further
ramp-up after 2014, e.g. habilitation criteria)
> High degree of government involvement
with many short-notice actions and low
predictability
5 Other
> Strong impact of current Argentina crisis,
especially on production
> Steep price increases due to lack of OEM
profitability and exchange rate effects
> Need to develop additional export markets in
combination with increased competitiveness
Source: EIU; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
16
Brazil
Suppliers need to combat declining or stagnating margins in Brazil
by focusing on cost reduction and operational excellence
Actions suppliers must take in Brazil
Product/customer strategy
Organization
> Revise product portfolio
> Evaluate new opportunities arising due to
localization criteria and the promotion of energy
efficiency within Inovar Auto
> Optimize overheads and cut costs in response to
strong cost increases in many areas, e.g. due to fierce
price competition, increasing labor costs, material
costs as well as unfavorable exchange rates and
freight costs
Footprint
Other
> Adjust plant footprint in order to avoid high
personnel and rental costs in former
automotive centers, especially in the areas
around São Paulo
> Evaluate opportunities due to new
installments of existing OEMs and
newcomers within Brazil
> Strive for operational excellence with a
focus on three key areas:
– Achieve purchasing excellence
– Increase productivity, especially through
higher automation
– Improve stock and working capital
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
18
B.2 Russia
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
19
Russia
Based on current political turbulence, we expect that Russia will not
return to growth before 2015/2016
Light vehicle sales and production, 2002-2019 [m units]
Sales
Production
+4.4%
-1.3%
+8.5%
2.8
2.6
3.2
2.7
+6.5%
1.1
2002
+5.0%
-1.4%
2.0
1.8
1.9
2014
2015
2.4
1.0
2013
2014
2015
2019
2002
2013
2019
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger market model
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
20
Russia
GDP growth is lower in BRIC countries – Future geopolitical
situation and Crimea crisis are adding significant uncertainty
Key factors influencing short-/medium-/long-term LCV sales and production
Short-term influence (2014)
Medium-/long-term influence
(2015-2019)
1 GDP development
> Previously: approx. 3% GDP growth
expected, negative impact from Crimea crisis
> Long-term slow, yet solid GDP development of
approx. 2-3% expected, but negative
impact from the current crisis possible
2 Disposable income
> Previously: approx. 4% growth expected,
negative impact from Crimea crisis
> Long-term disposable income growth of
approx. 4% expected, but negative impact
from the current crisis possible
3 Tax rates/import
duties
> Reduction in import duties due to WTO entry
> OEMs have to increase their localization rate
up to 60%, incl. localization of engine/
transmission
> Decreasing import duties for CBUs and
increase in import duties on components
make CBU imports in Russia increasingly
attractive
4 Government
incentives
> Short-term-oriented subsidy strategy for
local producers (as compensation for lower
import duties and scrappage fee payment)
> The obligation of OEMs to achieve a certain
amount of local content and capacity in
Russia expires by July 2018
> Subsidy situation unclear
5 Other
> Geopolitical impact: current market
participants expectations in light of Crimea
crisis: >10% market decline in 2014 vs. 2013
> Further geopolitical situation unclear
Top five market
drivers
Source: EIU; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
21
Russia
Given this environment, suppliers need to focus on key customers
with high long-term potential – And try to share the risks with them
Implications for suppliers
Product/customer strategy
Organization
> Clear focus on selected large-scale customers:
Avtovaz/Renault, VW, Kamaz
> Focus on products which can be competitively
produced in Russia over the longer term (even without
subsidies)
> Lean local organization incl. only those functions
necessary to manage client interface
> Key functions (R&D, product planning, etc.) to
remain in home country
Footprint
Other
> Focus on regional clusters: Togliatti, St.
Petersburg, Kaluga, Tatarstan
> Low/no investment activities in other regions
> Investment
– Careful, gradual investment approach in
Russia
– Risk sharing with OEM customers
recommended
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
22
B.3 India
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
24
India
India's growth is expected to return to high levels starting in 2015 –
Recovery speed depends on future government policies
Light vehicle sales and production, 2002-2019 [m units]
Sales
Production
+8.1%
+10.3%
+8.3%
+13.0%
3.0
3.2
5.3
3.6
+14.6%
3.7
3.9
2013
2014
4.4
0.8
0.8
2002
+9.8%
6.0
2013
2014
2015
2019
2002
2015
2019
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger market model
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
25
India
Revival of economic growth will boost industrial activity, increase
incomes and rekindle consumption growth
Key factors influencing short-/medium-/long-term LCV sales and production
Top five market
drivers
Short-term influence (2014)
Medium-/long-term influence
(2015-2019)
1 GDP development
2 Disposable income
> GDP growth expected at 4-5%
> Target to return to 7-8% growth
> Although incomes are rising, inflation has
been high and is impacting all segments
> Tight monetary policy will control
inflation
3 Tax rates/import
duties
> Government has reduced tax rates by 2-6%
across all vehicles
> Interest rates to remain stable at current
levels
> Tax rate benefit may be taken away;
implementation of uniform GST (goods &
service tax) across the country will help
decrease overall tax burden
> Interest rates should decline once inflation
starts coming down
4 Government
incentives
> Incentives and subsidies are provided by
the different federal structures and compete
against each other (provinces, regions)
> Some minor incentives for electric vehicles
expected
5 Other
> The 12th Five-Year Plan (2012-17) of India's
Planning Commission has laid out an ambitious plan: USD 1 trillion needed for
infrastructure, significant delay in execution
> No major changes to incentives and
subsidies in the various provinces or regions
expected
> Continued enhancement of emissions &
safety regulations
> Possible regulation of vehicle lifetimes
> Politicians are driving a strong mandate for
growth & development
> Restart of investment cycle and industrial growth
will lead to greater demand for LCVs
Source: EIU; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
26
India
India's high share of low-cost vehicles requires a low-cost setup
wherever possible, e.g. with low-cost parts/design centers
Implications for suppliers
Product/customer strategy
Organization
> Extremely high share of low-cost vehicle fleet means
strong price/margin pressure on the required parts –
Focus on low-cost products/technologies for
suppliers
> Focus on alternate materials and
technologies to reduce weight and cost
> Low-cost design in local development center
necessary to meet extreme cost pressure
> Restructuring and optimization due to strong
increase in costs and slowing growth in recent period
Footprint
Other
> Profitability can often be reached only by
utilizing a range of (local) subsidies which vary
widely among the various federal regions/provinces
in India
> However, lean setup preferable due to overall poor
infrastructure (e.g. production near the coast makes
exporting easier)
> Lack of infrastructure is a serious issue
> Delays and corruption while dealing with
government and other agencies; need for
robust governance processes
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
27
B.4 China
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
28
China
After becoming the world's largest car market, China's growth rates
are expected to drop to a moderate level of about 5%
Light vehicle sales and production, 2002-2019 [m units]
Sales
Production
+4.6%
+9.1%
20.8
22.7
+4.8%
29.6
+9.1%
24.7
20.6
+19.5%
24.5
+19.2%
3.0
2.9
2002
22.4
29.6
2013
2014
2015
2019
2002
2013
2014
2015
2019
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger market model
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
29
China
Stable single-digit growth is expected in China over the medium to
long term, mainly due to increasing disposable income
Key factors influencing short-/medium-/long-term LCV sales and production
Top five market
drivers
Short-term influence (2014)
Medium-/long-term influence
(2015-2019)
1 GDP development
> GDP growth rates at 7.3% are still high in a
global context, but historic growth rates can
no longer be reached
> By 2019, growth rates expected to drop
further to approx. 6.2%
2 Disposable income
> Disposable income is increasing strongly in
China: 8.3% in 2014
> With 6.9% CAGR, disposable income
expected to develop above GDP growth
3 Tax rates/import
duties
> Increasing tax expenses: Taxes have been
gradually raised, while tax breaks and
subsidies are being phased out
> Highly fragmented tax incentive landscape
> Incentives for small cars and EV/PHEV
expected
> Further fast development of infrastructure
> Air quality problems in big cities will
accelerate new clean engine technologies
> Tax on imported parts will increase to
encourage local production
4 Government
incentives
5 Other
Source: EIU; Roland Berger
> Electric mobility will be refunded by the
government
> Further fast development of infrastructure
> OEMs speeding up sales network expansion
and penetrating new regions & lower tier cities
> OEMs are continuously introducing new
models & expanding production capacity
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
30
China
Suppliers need to also look at additional products and the
aftermarket as well an intelligent mix of JVs and WOFEs
Implications for suppliers
Product/customer strategy
Organization
> Focus on big 4 (SAIC, FAW, Dongfeng, Chang'an)
while penetrating winning locals (e.g. Great Wall,
Geely)
> Participate in expected ramp-up of e-mobility,
telematics and increasing share of electronics
> Participate in growing IAM aftermarket, e.g.
through partnerships with winning aftermarket
chains
> Develop mid-end tier-2 suppliers and implement
design-to-cost
> Implement cross-functional cost reduction to
secure margins
> Extend cooperation (joint R&D, joint production)
instead of full JV
Footprint
Other
> Leverage existing JV partnership, e.g. offer
low- to mid-cost technology via localized
R&D resources to enter Chinese OEMs
outside JVs
> Since many OEMs are expanding their
capacities in China in different cities,
suppliers should follow the "right" OEMs with
new plants
> Intelligent mix of WOFE and JVs depending
on technology maturity
Note: WOFE = Wholly foreign-owned enterprise
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
31
C. Beyond BRIC:
New growth regions
for the automotive
industry
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
32
RoW markets don't have the momentum of BRIC, but growth is stable
and certain RoW markets are outperforming the global market
Light vehicle (LV) sales and production, 2002-2019 [m units, %]
Sales
Production
56.6
Next gen.
growth
markets
6%
14%
79.5
9%
13%
103.4
9%
13%
RoW
8%
13%
35%
68%
2002
2019
14%
15%
13%
10%
34%
BRIC
2012
104.7
100%
33%
67%
43%
11%
81.5
39%
Triad
36%
BRIC
Next gen.
growth
markets
57.1
RoW
41%
Triad
100%
42%
11%
2002
2012
2019
Note: Triad including Western Europe (excl. Balkan countries), Japan, USA; "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
33
Outside Triad/BRIC, 5 markets will account for over 80% of incremental
growth up through 2019: Mexico, Indonesia, Thailand, Iran and Poland
Top 10 markets outside Triad/BRIC by incremental vol. (LV production), 2013-19 [m units]
CAGR
2013-2019
7.1%
7.4%
3.7%
9.8%
10.4%
2.7%
3.2%
2.9%
4.2%
2.9%
+4.6
81%
0.5
0.2
0.2
0.2
0.1
0.1
0.8
0.6
26.5
0.6
0.6
0.6
1.5
22.0
2013
Mexico Indonesia Thailand
Iran
Poland Turkey Argentina Slovakia South Malaysia Rest
Rest
positive negative
Africa
2019
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
34
Of the growing RoW markets, Mexico and Thailand in particular
continue to be strong export hubs
Next generation growth markets by net exports and share of Triad OEMs
Incremental prod.
volume, 2013-2019
[m units]
Mexico
Net exports, 2019
[m units]
Share of Triad OEMs in local
production, 2019 [%]
3.1
1.5
Indonesia
0.6
Thailand
0.6
Iran
0.6
Poland
100%
0.0
83%
1.6
0.0
99%
23%
0.6
0.5
Turkey
0.2
0.1
Argentina
0.2
0.1
Slovakia
0.2
South Africa
0.1
Malaysia
0.1
100%
89%
100%
0.9
72%
-0.2
-0.1
97%
35%
Note: "Light vehicle" includes passenger cars and light commercial vehicles (GVW < 6 to)
Source: IHS Automotive; Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
35
D. Conclusions
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
36
Due to changed market dynamics in BRIC markets, suppliers have
to rethink and adjust their local activities
Summary
BRIC markets: Status quo and outlook
Need for action by suppliers
> In a departure from the past decade, BRIC is no
longer driving global growth as a whole
> In the future, China will still be the global
volume driver in automotive, with high
single-digit growth rates
> The other three markets are plagued by
significant uncertainty
– Russia is involved in the Crimea crisis and
dealing with geopolitical developments
– Brazil's market is hard to forecast due to
economic volatility and changing
regulations
– India is expected to return to stronger growth,
but at this point in time is uncertain and most
players suffer from a lack of profitability
> Short term: address specific BRIC market
conditions (starting in 2014 and onward):
– Brazil: Restructure cost base and
increase productivity to avoid high cost of
materials, personnel, freight, etc.
– Russia: Reduce risks
– India: Focus on low-cost parts and local
low-cost design centers
– China: Capture market opportunities
> Medium term: Adopt individual BRIC country
strategy in line with reduced future market
growth dynamics
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
37
New growth markets beyond Triad and BRIC are emerging –
Suppliers need to address these markets with tailored approaches
Summary
Other up-and-coming growth
markets: Status quo and outlook
> Beyond BRIC there is a very fragmented set of
further growth markets (production vol. of 1 m)
> Most promising emerging markets are Mexico,
Indonesia, Thailand, Iran and Poland
> Further markets with significant potential
include Turkey, Argentina, Slovakia, South
Africa and Malaysia
Need for action by suppliers
> Identify future global target market portfolio
> Evaluate key success factors to enter the
market
> Define specific market entry strategy for
additional attractive future growth markets
(customer, product, technology, footprint)
> Roll out strategy, including adjusted footprint
(if needed)
> As with other growth markets, they need to be
viewed in a differentiated manner due to their
diverse nature, especially regarding their
function as production hubs for other markets,
openness toward foreign OEMs (e.g. Triad
OEMs) as well as CKD share
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
38
Your contacts
Marcus
Berret
Dr. Thomas
Schlick
Peter
Boekels
Partner
Automotive CC
Partner
Automotive CC
Senior
Consultant
Automotive CC
Löffelstraße 46
70597 Stuttgart
Bockenheimer
Landstrasse 2-8
60306 Frankfurt
Mies-van-der-Rohe-Str. 6
80807 Munich
E-mail
marcus.berret@
rolandberger.com
thomas.schlick@
rolandberger.com
peter.boekels@
rolandberger.com
Tel.
+49 711 7673-419
+49 692 9924-6202
+49 89 9230-8767
Mobile
+49 160 744-7419
+49 160744-6202
+49 160 744-8767
Source: Roland Berger
Roland_Berger_Automotive_BRIC_Study_20140530.pptx
39

Download Report