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Automotive Industry Outlook
+ Case studies of Spire's work in the Automotive sector
As a result of the global economic downturn, the automotive industry is undergoing one of the most challenging periods in its history, with world-wide sales forecast to fall in 2009 to 56.1 million units, a drop of 8.74%. Carmakers around the world are slashing production as inventories reach unprecedented levels. An expanding middle class in emerging markets and the rise of Green regulations, however, look set to inject some life into the industry.
During recessions, many consumers defer car purchases – a pattern exacerbated by the effect of the credit crunch on access to car loans. Other groups of consumers trade down to smaller car models or cheaper rides, a boon to two-wheeler and compact car manufacturers. Emerging markets, particularly those in Asia, present the best potential amidst the current gloom. Due to sound economic fundamentals and the basic emerging market dynamic of robust growth as larger shares of the economy become “organized”, the middle class is rapidly expanding. This growth is currently slowing but will not stop. Moreover ongoing state investments in road construction as a result of fiscal stimulus measures will help to bump up the low auto penetration rate.
And with the world’s focus increasingly on Green technology, governments are pumping subsidies and introducing tax incentives to promote environmentally-friendly vehicles, leading to demand for hybrid-electric and CNG vehicles – a fact that promises to rev up the ailing industry by creating more reasons to change vehicles in the mid to long-term.
Within Asia, Thailand and Vietnam are poised to emerge as automotive manufacturing powerhouses. The Thai government plans to specialize in manufacturing motorcycles by increasing R&D expenditure in that area while Vietnam is fast competing with China as a low cost manufacturer of automotive components.
In today's highly-competitive environment, automotive manufacturers, suppliers, and distribution partners need to weigh the threats and opportunities that arise from shifting consumption patterns and evolving supply chains as the industry becomes globally-integrated.
Spire’s automotive expertise
The current climate challenges automotive assemblers and parts manufacturers to move beyond traditional business models, focusing more on non-traditional segments and countries, non-core businesses as well as more cost-efficient paths to market. Spire is poised to leverage our Asia-wide automotive experience to deliver research and consulting solutions that address these needs.
Our work in the automotive space has addressed subjects ranging from sales and marketing and supply chain management to the structuring of regional distribution centers and headquarters.
Case Studies:
To request more information on our research and consulting services in the automotive industry, please contact either our country offices or email info@spireresearch.com.
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