MZaitsev-Presentation for Dr. Palm

MARKET GROWTH IN EMERGING MARKETS

Prepared by Maxim Zaitsev

An evaluation of opportunity and risks providing strategic suggestions and guidance

Professional MBAAutomotive Industryautomotive.tuwien.ac.at

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EMERGING MARKETS

MZaitsev-Presentation for Dr. Palm

Key Players:1. Brazil2. Russia3. India4. China

“With booming economies and low vehicle penetration rates, the emerging markets are the key source of growth for today’s global automotive industry. Home to almost half of the world’s population, China, India and ASEAN are three key markets spearheading this growth.”-Deloitte

Emerging Markets | Automotive & Assembly." DeloItte

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EMERGING MARKETS TRENDS

By 2030, the global share of vehicles sold in China will be above 40% (2016: ~29%)

Foreign based OEMs produced an annual median total shareholder return ranging from 36% to 49%. However, automakers that focused more on developed markets posted lower returns of 23% to 35%. (The Boston Consulting Group)

KPMG GAES 2017 https://public.tableau.com/views/GAES2017/GAES?:embed=y&:display_count=yes&:toolbar=no&:showVizHome=no

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CHINA IN THE SPOTLIGHT

MZaitsev-Presentation for Dr. Palm"Emerging Markets | Automotive & Assembly." Deloitte.

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EMERGING OPPORTUNITIES Rising Incomes/Growing Middle class Lower labor costs New vehicle financial programs New Product Development

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RISKS Stability of monetary policies and banking

systems Legislative uncertainties and tax inefficiencies

Cost of licensing Cost of raw materials Petroleum supplies Partnership Expectations

https://www.pwc.com/ca/en/industries/automotive/emerging-markets.html

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STRATEGY AND SUGGESTIONS1. Joint Ventures and Strategic Partnership

Reduction of R&D Costs Accelerated innovation cycles by leveraging advanced technologies Diversifying a risk profile

2. Leverage open, scalable ecosystems and technologies. Improved manufacturing efficiencies through enhanced processes of use of advanced

materials.

https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/manufacturing/deloitte-cn-mfg-emerging-markets-opportunities-en-190912.pdf

MZaitsev-Presentation for Dr. Palm

BIBLIOGRAPHY1. "Emerging Markets | Automotive & Assembly." McKinsey & Company. McKinsey,

n.d. Web. 18 Mar. 2017.2. "Growth in Emerging Markets." PwC. N.p., n.d. Web. 18 Mar. 2017.

https://www.pwc.com/ca/en/industries/automotive/emerging-markets.html3. "Emerging Markets | Automotive & Assembly." DeloItte. N.p., n.d.

Web.https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/manufacturing/deloitte-cn-mfg-emerging-markets-opportunities-en-190912.pdf

4. “GAES2017 | Automotive Executive Study." KPMG. N.p., n.d. Web. https://home.kpmg.com/xx/en/home/insights/2017/01/global-automotive-executive-survey-2017.html