Car manufacturers are currently expecting little from the European market due to the debt crisis. Only Germany is likely to contribute to a stabilization of business. Because China is no longer growing as it used to, German manufacturers are increasingly turning their attention to the USA, which is still the world's largest market. They want to contest the territory of the top dogs there more than before. In the meantime, the Chinese are testing the European market. Once again. Whether they will finally succeed remains to be seen.
All in all, the calculation could somehow work out for everyone, as the VDA believes that the global automotive market will grow by four percent to around 68 million cars in 2012. India is currently growing just as strongly as Japan, Russia, Brazil and the American market for passenger cars and light trucks, which already recorded an increase of 11 percent in January. The Germans are also likely to benefit from the US boom, believes VDA President Matthias Wissmann: "German manufacturers already broke the 1 million mark in sales on the US market last year."
The boom is likely to continue throughout 2012. The strong German brands are contributing to this, as is the increased awareness of fuel efficiency among Americans. And not only the Americans, believes Wissmann, who sees the new fuel-efficient models well positioned in all important markets: "Orders from foreign customers have been steadily increasing for two and a half years." In view of the debt crisis in some European countries, this is certainly an advantage
China ventures a new start in the East
The situation has recently deteriorated dramatically in Southern Europe in particular: according to the European Automobile Manufacturers' Association (ACEA), almost a third fewer new vehicles were registered in Portugal and Greece in 2011, while Italy and Spain also recorded double-digit declines. In contrast, the new EU markets are developing positively. The passenger car market in Hungary grew by 44 percent at the beginning of the year, in Poland by 22 percent and in the Czech Republic by 11 percent.
In the East, the Chinese are once again trying their luck in Europe. Great Wall recently opened the first Chinese car factory on European soil in Bulgaria, a low-wage country. The parts for the off-road vehicles assembled there come from China. They will initially be sold in Bulgaria and then in neighboring countries.
China's market leader Cherry Quantum is also focusing on Europe: it is building up the international Qoros brand with financial support from the Israel Corporation. The cars are produced in China, but according to European standards thanks to the technical expertise of Magna Steyr in Graz, Austria. German car manufacturers are not yet facing any serious competition. But that could change. Great Wall is convinced that its off-road vehicles will be on all European roads within three to five years. Until then, the Chinese will certainly have to get one or more automotive banks on board. So if you want to be a player in Europe or beyond in the long term, whether as a manufacturer or financier, you need to align your structures, processes and IT internationally more than ever.
