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Chinese car makers driving into US market
Watch out Ford, Chrysler and General Motors, competition will soon drive in from China. AT Kearney's annual report says Chinese car makers are looking to drive into the US market as early as 2008, reports CNBC-TV18.
Watch out Ford, Chrysler and General Motors, competition will soon drive in from China. AT Kearney's annual report says Chinese car makers are looking to drive into the US market as early as 2008, reports CNBC-TV18.
Ford, GM and Chrysler - the share of the traditional big 3 has fallen from 72% in 1995 to 57% today. This is expected to reduce further to 50% by 2011. A recent survey by AT Kearney on the global automotive industry says the Asian automotive OEMs like Toyota, Honda and Nissan have outperformed inspite of higher prices. And the next big threat will come from Chinese carmakers.
"Any auto company setting up a plant in China has to go in for a joint venture, there is no provision for 100% subsidiary, which increases the learning curve of local OEMs," said Manish Mathur, Principal - Auto Industry Practices, AT Kearney, India.
While China has become an export hub for most manufactured goods, they have not been able to make a dent in the car market. But the study says that could soon change. Excess capacity will force Chinese carmakers to look at exports. Chinese carmaker Geely is planning its US debut in 2008 while Shanghai Automotive will soon roll out Rovers after it bought the design rights for several Rover cars from BMW.
"Any auto company setting up a plant in China has to go in for a joint venture, there is no provision for 100% subsidiary, which increases the learning curve of local OEMs," said Manish Mathur, Principal - Auto Industry Practices, AT Kearney, India.
