BRIC Countries to Produce 37% of Global Output by 2016

The sustained growth of world auto industry led by Brazil, Russia, India and China will continue until 2016 the least, according to a report by PricewaterhouseCoopers (PwC) presented at Brazilian automakers association Anfavea’s year end press conference.

Global output may not grow 10 percent every year, like it did in 2010, but Brazil will help in redrawing the global production distribution map.

In 2016, the BRIC countries will account for 37% of the global, forecast production of 93 million cars and commercial vehicles, compared to Europe's 20%, North America's 15% and other countries' 27% (including Japan, South Korea and Thailand).

Government interventions will interfere with the future of the global industry, thus impacting on where vehicles will be manufactured, what kind of vehicles will be made, on the supplying infrastructure and on the nature of investments in research and development,” said PwC.

It is still unclear how the Brazilian government will look at new ways, but the country presents energy alternatives not found at competitive prices anywhere else in the world. Growing efficiency of present internal combustion engines would resist the advance of electric or hybrid vehicles in the near future, admitted PwC.

Restructuring and alliances will keep pace with current trends while global expansion will represent an even greater challenge, said PwC Brazil official Marcelo Cioffi.

He was joined by his colleague Thomas McGuckin via conference call from China, who said that by 2016, production of light vehicles in China will total no less than 22.5m units yearly. He added that the premium segment only holds a 3.6% market share, compared to Europe's 15% and 13% in the US.

However, importing quickly overcame the production of premium models in China itself between 2006 and 2010. Yet the market is marching towards 1m of these cars per year in a short time span”, he said.

This will favor the largest producers of this kind of automobile that are concentrated in western Europe.
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