For auto mart BRIC is the beacon of booming biz

“While economic crisis plunged many of the world automotive markets into a free fall, markets in the BRIC countries were generally less affected and now offer prospects for exceptional growth,” global consultancy firm Boston Consulting Group said in a report.
Going forward sales in BRIC countries are likely to grow at rates ranging from 3-15 per cent per year and may account for some 30 per cent of the global auto market in 2014, the report added. Among the BRIC countries, China will remain by far the largest among the four automotive markets, expanding its share of total BRIC sales volume from 53 per cent in 2008 to 61 per cent in 2014, while, Brazil, the most mature and stable of the BRIC markets is likely to remain the second largest through 2014, BCG said.

According to the report, India will outpace both Brazil and China in growth throughout the forecast period, occupying the third position in terms of market size until 2014, when Russia is likely to take its position.

The Russian market is likely to overtake the Indian market in 2014 driven by its strong post crisis recovery. “We expect that by 2018, India will surpass both Russia and Brazil to become the second largest of the BRIC auto markets,” the report said.
Elaborating further, BCG said growth in the automotive market of India was driven by the entry of foreign firms and by emerging local competitors such as Tata Motors.
Meanwhile, the factors that facilitated the growth of automotive industry in India include — the country’s stricter import regulations, more distinctive consumer requirements and less saturated market.

During 2009, auotmobile sales in India grew by over 10 per cent and are likely to continue to grow at around 9 per cent per year through 2014, faster than either Brazil or Chinese markets. In a bid to take advantage of the lucrative market in the emerging countries, leading automotive manufacturers and suppliers are turning their attention to the BRIC countries.

As the BRIC countries differ dramatically in market development, local capabilities, and consumer preferences, foreign firms must devise country-specific approaches, it said.
Press Trust of India