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South America 2025 and the Asian automotive industry progression.

August 17, 2013

 

 

SOUTH AMERICA

The automobile market will grow significantly by 2025, becoming one of the top three growth markets globally for light vehicle sales and presenting opportunities for improvements in fuel efficiency and reduced CO2 emissions, according to a forecast by IHS Automotive, the leading provider of comprehensive content, expertise and insight on the global automotive industry.

IHS Automotive forecasts that nearly 2.3 million additional vehicles will be sold in South America by 2025, equal to the output of 10 modern assembly plants. Most of the growth will occur in Brazil, followed by Argentina and Colombia.

Brazilian lawmakers late in 2012 enacted legislation providing tax benefits aimed at encouraging manufacturers to improve vehicle efficiency and reduce carbon emissions, and increase local research and innovation. Brazil Ministry of Trade and Industrial Development (MDIC) hired IHS Automotive Consulting to help them understand the growth potential under the new law and provide guidance on how Brazil could significantly improve the fuel efficiency of Brazilian vehicles and reduce CO2 emissions by 2017.

Paulo Cardamone, Managing Director, IHS Automotive Brazil, says, “The new automotive regime will promote green technology, help Brazilian consumers by significantly improving the fuel efficiency of light vehicles and, in the process, make Brazilian vehicles technically competitive with those in Europe, the U.S. and Asia. Brazil can become a net exporter of vehicles in the not too distant future.” ref: www.ihs.com

 

ASIA.
The last twenty years have been an exciting time for the Automotive industry, given its challenges. To achieve, succeed or survive in a global market made some winners, resulting better or worse than others. Volkswagen with Tata Motor's merger was quite interesting: as it joined force in the South Asian market. Following that Fiat-Chrysler’s with Japan’s Suzuki and Maruti, but challenges prove to be there. Hyundai-Kia enforced its market gain with lots of efforts.

China revealing its might, has its very own car giant, as America’s GM recuperated from the mess of joint ventures between Chinese and foreign Automotive manufacturers. China and GM Motors General Motors launched Chinese brands resulting with rising sales across Asia.

EUROPE.
Europe's revitalization came through after a price, with GM’s Peugeot-Opel division enjoying a come-back but market is saturated. Ford taken over by IBM ware company was quite the shocking move for a company that is a stranger in Automotive industry. Regarding an investment, apparently they will sell the production operation to Magna.

 

EMISSION FREE.
Now, given that technology is improving targets for carbon-dioxide emissions are relatively at ease by offering natural-gas hybrids. Making methane gas and liquid fuels from bacteria and algae made the even stricter CO2 targets for 2025 much more attainable.

While hydrogen fuel cells are at work, these are competitive only in countries where the government has mandated the provision of hydrogen filling stations. Similarly, fully electric cars are predominant only in countries that can produce electricity cheaply, such as nuclear-powered France.

 

Provided the market intelligence report and diligent research for the emerging markets for the last 5 years, in addition to South America and Asia - opportunity presented itself and growth for Amsia Motors.

Competitive technology, efficiency, clean and green environment friendly automotive vehicle manufacturing is the edge with the focus of being cost effective.

 

Therefore without further due, implementing the resources strategically for expansion and growth in the emerging markets in Asia, South America primarily apart from Africa and the Middle East.

 

 

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