The four BRICs
The BRIC’s roller coaster. 2009 Sales dropped in 50%, stabilize in 2010 Annual growth of 15% per year through 2014
The largest one. Share in 53% in 2008 Share is expected to be 61% in 2014
The most mature and stable market. Probably remain the second largest to 2014
Outpace both Brazil and China in growth
• • • • • • The 4 BRICs are different There is no standard BRIC car Brazilian favor sporty hatchback Russians – western sedans and SUV Indian seeks ultra-low-cost minicars China – affordable luxury style sedans
• The largest South America’s largest economy • ...view middle of the document...
• Founded in 1991. • Its purpose is to promote free trade and the fluid movement of goods, people, and currency. • It is now a full customs union.
Brazil and Mercosur
Objective: the free transit of produced goods, services and factors between the member states. This includes the elimination of custom rights and lifting of nontariff restrictions on the transit of goods Fixing of a common external tariffs (CET) and adopting of a common trade policy
Brazil and Mercosur
• There is an influx of cars from Mexico as the Brazilian currency has appreciated significantly • Governments must act to protect the labourintensive local industries from this . • "You can't open up Mercosur to foreign competition. The product is a generation or two behind global markets so if you do this it would put production lines in jeopardy”
Brazil automotive market, history
• • • • The market is most mature and stable Front runner in terms of auto companies localization 1921 – FMC began to produce Model T First wave OEMs since 80-s (Fiat, Ford, GM, VW) dominates the market • Second wave OEMs (Daimler, Honda, Hyundai, LR, Mitsubishi, PSA) • Long history market • Not block to foreign OEM
Brazil, market structure
• Long and strong presence of foreign OEMs. • The market belongs entirely to foreign OEMs. • The strong presence of highly competitive foreign OEM hindered the establishment of locals. • The overall degree of localization is high. • The first wave OEMS are far ahead in localization
• The first 4 have local R&D centers with international reach • Operate several production plants • Manage broad sales network in larges cities as well as in 3th-4th tiers cities
• Human resource: 40,000 well-trained engineers graduate...