Automotive and Auto component companies from the United States, Europe and Japan confront a growing challenge from manufacturers based in emerging markets like China and India. Chinese and Indian automotive and auto component companies are starting to develop their footprints outside their home markets, and some of these companies are strategically positioning themselves to take over well-known Western brands.
It’s all part of a dramatic shift in the sources of competitive advantage – a shift that intensifies in a multi-polar world where rapidly emerging economies are becoming active shapers of globalization by virtue of a growing market as well as competitive and efficient manufacturing.
Established automotive suppliers are helping Chinese OEMs apply developed-market design, technology and safety standards to their products. And emerging-market OEMs have bought brands, design and technology know-how from the developed world, have invested heavily in research and development and are getting better and better at innovation. These across-the-board investments come at a time when concerns about affordability, traffic congestion and the environment are starting to mount in all markets – favoring the smaller, more fuel-efficient cars that emerging carmakers specialize in producing.
Embrics helps its clients from emerging markets to explore growth opportunities, both organic and inorganic, in developed and other emerging markets. We have also advised a number of companies from the triad regions to establish their foot print in the emerging markets by either setting up Greenfield plants, acquire local manufacturers or forge strong strategic partnership which could include outsourcing of components or technology transfer.