China, India can reshape global auto industry
Thursday, 14 January 2010
DETROIT, Jan 13 (AFP): China and India could reshape the global auto industry and pose a significant competitive threat in coming years, executives from the world's top carmakers said at the Detroit auto show.
"They are a very credible threat and we discount anyone at our peril," John Mendel, vice president in charge of sales at American Honda Motor, said Tuesday.
While the globally competitive nature of the automotive industry requires mass economies of scale, the relatively young Chinese and Indian manufacturers are ramping up quickly, Mendel noted.
And the Chinese automakers buying brands like Hummer and Volvo are gaining access to a valuable distribution network, critical technology and "instant credibility," he told AFP.
India's Tata Motors will take its opening shot at the US market Thursday, when it brings the Nano minicar to the Detroit science center to show Motor City what the world's cheapest car looks like.
Build Your Dreams Motor (BYD) brought its four-door electric e6 straight to the floor of the auto show where it vowed Tuesday to become the first Chinese automaker to enter the United States at the end of this year.
Meanwhile, both countries are becoming increasingly important markets in the global sales strategy of top automakers with China surpassing the United States in total sales volume last year and Indian sales expected to double by 2016.
Toyota's chief of US automotive operations expressed skepticism that either BYD or Tata would make a significant mark here in the short term.
"It's not so easy to come walking into a market and develop a product and distribution network," Don Esmond said in an interview on the sidelines of the auto show.
"They are a very credible threat and we discount anyone at our peril," John Mendel, vice president in charge of sales at American Honda Motor, said Tuesday.
While the globally competitive nature of the automotive industry requires mass economies of scale, the relatively young Chinese and Indian manufacturers are ramping up quickly, Mendel noted.
And the Chinese automakers buying brands like Hummer and Volvo are gaining access to a valuable distribution network, critical technology and "instant credibility," he told AFP.
India's Tata Motors will take its opening shot at the US market Thursday, when it brings the Nano minicar to the Detroit science center to show Motor City what the world's cheapest car looks like.
Build Your Dreams Motor (BYD) brought its four-door electric e6 straight to the floor of the auto show where it vowed Tuesday to become the first Chinese automaker to enter the United States at the end of this year.
Meanwhile, both countries are becoming increasingly important markets in the global sales strategy of top automakers with China surpassing the United States in total sales volume last year and Indian sales expected to double by 2016.
Toyota's chief of US automotive operations expressed skepticism that either BYD or Tata would make a significant mark here in the short term.
"It's not so easy to come walking into a market and develop a product and distribution network," Don Esmond said in an interview on the sidelines of the auto show.