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You are here » Home Page » News » The auto industry in the Bric Countries offer excellent growth Opportunities

The auto industry in the Bric Countries offer excellent growth Opportunities

2011-11-04 source own

The country’s largest auto market, Beijing has also introduced limits on car registrations, raising fears the auto market may slow further. On May 2011, China’s auto market posted its first decline in two years, as sales dipped 0.1 percent from a year earlier. Auto sales are up about 6 percent for the first seven months of the year.

The Chinese government has encouraged foreign automakers to establish joint ventures and share technology with local companies. That’s resulted in numerous home-made brands such as Geely, Chery and Dongfang.

The most popular vehicle in the country in 2010 was the Wuling Sunshine, with over 750,000 units of the car sold in that year. The van is made by a Joint venture between GM, Shanghai Automotive Industry Corporation (SAIC) and Wuling Automobile and retails for about $5,000. The next most popular vehicle was the Chana Mini Bus made by Changan Auto, with nearly 240,000 units of the model sold in 2010.

4. Brazil
2011 sales forecast: 3.5 million
2010 vehicles sold: 3.3 million
Estimated growth: 5%

Brazil overtook Germany in 2010 to become the world’s fourth biggest car market, as sales jumped nearly 10 percent from the previous year.

Foreign investors see big potential in Brazil as the Latin American giant becomes increasingly prosperous. With a population of 192 million people, car companies expect sales to boom as the country’s middle class grows. Currently, Brazil has some 30 million vehicles on its roads.

In December, Italian car maker Fiat announced it was building a second factory in the country worth $1.8 billion, as part of a $5.9 billion investment in Brazil over the next three years. South Korea’s Hyundai Motor, and China’s Chery Automobile are also set to open factories in Brazil.

Fiat is the number one car maker is Brazil, accounting for over 23 percent of sales. Germany’s Volkswagen is a close second with 22.7 percent, and makes Brazil’s top selling car since 1987 — the VW Golf. The Brazilian designed car succeeded another highly popular VW model — the Beetle — in the Brazilian market in 1980. Nearly 305,000 units of the Golf were sold in 2010, over 100,000 more than its nearest rival, the Chevrolet Celta.

6. India
2011 sales forecast: 2.9 million
2010 vehicles sold: 2.7 million
Estimated growth: 7%

India is expected to become the world’s third biggest car market by 2020, according to J.D. Power and Associates, which forecasts sales of 11 million that year.

India was one of the fastest growing car markets in 2010 with sales growth of 31 percent. This year though car sales have slowed as the central bank has raised interest rates from 6.25 percent at the start of the year to 8 percent in July.

Despite efforts by carmakers such as Ford, GM and Nissan to aggressively expand their Indian operations to offset slumps in the U.S. and Europe, Domestic automakers continue to dominate the market. The best selling car in 2010 was Maruti Suzuki’s Alto. The company sold 300,950 units of the car,  nearly double the amount of its closest competitor — the Hyundai i10.

In 2008, Indian carmaker Tata Motors made headlines with its attempt to make an affordable car for India’s middle class. The automaker introduced the world’s cheapest car, the Tata Nano (pictured), which sold for just $2,500 locally. But the model has been a spectacular flop, selling just 1,200 units in August this year. Still, “minicars” and sub-compacts account for a huge portion of the market and made up 80 percent of total car sales in 2010.

8. Russia
2011 sales forecast: 2.4 million
2010 vehicles sold: 1.9 million
Estimated growth: 20%

Russia is the fastest growing major auto market so far this year. Car sales surged 56 percent in the first six months of 2011 compared to the same period last year. The country surpassed Britain this year to become Europe’s third-largest auto market. It could soon surpass Europe’s second-largest auto market France and Boston Consulting Group estimates Russia will overtake Germany to become Europe’s largest car market by 2018.

In 2010, Russia’s car sales were spurred by the government’s cash for clunkers scheme, under which drivers could turn in a car 10 years or older and  receive a $1,700 discount for a Russian-made car. That incentive helped boost Russia’s flagship carmaker AvtoVAZ (pictured) with sales surging 42 percent in 2010.

The most popular car in Russia is the Lada Riva, with nearly 140,000 units sold last year. Four of the top 10 cars by sales are Lada models. The Ford Focus is the highest selling foreign car model in the country coming in at number five and Ford was the first foreign car maker to start manufacturing in Russia in 2002.

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