market expansion in Bric countries

1. Prepared by Maxim Zaitsev
MZaitsev-Presentation for Dr. Palm
An evaluation of opportunity and risks providing strategic suggestions and guidance
Professional MBA
Automotive Industry
automotive.tuwien.ac.at

2. MZaitsev-Presentation for Dr. Palm 2
Key Players:
1. Brazil
2. Russia
3. India
4. China
“With booming economies and low vehicle
penetration rates, the emerging markets are
the key source of growth for today’s global
automotive industry. Home to almost half of the
world’s population, China, India and ASEAN
are three key markets spearheading this
growth.”-Deloitte
Emerging Markets | Automotive & Assembly." DeloItte

3. MZaitsev-Presentation for Dr. Palm 3

4.  By 2030, the global share of vehicles sold in China will be above 40% (2016: ~29%)
 Foreign based OEMs produced an annual median total shareholder return ranging
from 36% to 49%. However, automakers that focused more on developed markets
posted lower returns of 23% to 35%. (The Boston Consulting Group)
MZaitsev-Presentation for Dr. Palm 4
KPMG GAES 2017 https://public.tableau.com/views/GAES2017/GAES?:embed=y&:display_count=yes&:toolbar=no&:showVizHome=no

5. MZaitsev-Presentation for Dr. Palm 5
"Emerging Markets | Automotive & Assembly." Deloitte.

6.  Rising Incomes/Growing Middle class
 Lower labor costs
 New vehicle financial programs
 New Product Development
MZaitsev-Presentation for Dr. Palm 6

7.  Stability of monetary policies and banking systems
 Legislative uncertainties and tax inefficiencies
 Cost of licensing
 Cost of raw materials
 Petroleum supplies
 Partnership Expectations
MZaitsev-Presentation for Dr. Palm 7
https://www.pwc.com/ca/en/industries/automotive/emerging-markets.html

8. 1. Joint Ventures and Strategic Partnership
 Reduction of R&D Costs
 Accelerated innovation cycles by leveraging advanced technologies
 Diversifying a risk profile
2. Leverage open, scalable ecosystems and technologies.
 Improved manufacturing efficiencies through enhanced processes of use of advanced
materials.
MZaitsev-Presentation for Dr. Palm 8
https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/manufacturing/deloitte-cn-mfg-emerging-markets-opportunities-en-
190912.pdf

9. 1. "Emerging Markets | Automotive & Assembly." McKinsey & Company.
McKinsey, n.d. Web. 18 Mar. 2017.
2. "Growth in Emerging Markets." PwC. N.p., n.d. Web. 18 Mar. 2017.
https://www.pwc.com/ca/en/industries/automotive/emerging-markets.html
3. "Emerging Markets | Automotive & Assembly." DeloItte. N.p., n.d.
Web.https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/manufa
cturing/deloitte-cn-mfg-emerging-markets-opportunities-en-190912.pdf
4. “GAES2017 | Automotive Executive Study." KPMG. N.p., n.d. Web.
https://home.kpmg.com/xx/en/home/insights/2017/01/global-automotive-
executive-survey-2017.html
MZaitsev-Presentation for Dr. Palm