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AsiasLowCostCompactVehicleDevelopmentReport

FollowingtheTataNano,anultralowpricecompactvehiclerevealedinJanuary2008inIndia,MarutiSuzukiof

IndialaunchedtheAStar,thenewgenerationAlto,fromOctober2008.Bothproducts,strategiccompactsfor

emergingcountriesaimingatbothIndianandglobalvehiclemarkets,surelyhaveimmenseimpactsontheglobal

automotiveindustry.

PresentSituationandFutureMarketPerspectiveofEmergingNations

Analysisofcompetitivenessonmajor52strategicmodelsforemergingcountriesbasedonproductoutlines,

productconceptsandmanufacturingandsalesschedule.

Increasingsignificancesofemergingcountrieschangerolesofeachcountryforconceptdesigning,development,

manufacturingandexportofstrategicvehiclesforemergingcountries.

AnalysisoncurrentstatusandforecastofmotorizationinAsiabasedonsalestrendbyvehiclesegmentsand

replacementdemandsfrommotorcycles.

By

analyzing

advancement

of

motorization

in

major

emerging

countries,

clarifying

vital

elements

for

strategic

vehiclesforemergingcountriesforthefuture.

Globalautomakersstrategiesforemergingcountrieshaveenteredintoaneweraofcompetingwithoriginally

developedproductsforemergingcountriesinprice,qualityandenvironmentalandsafetyspecificationsinsteadof

competingwithoutdatedproductsonlyinlowprice.WithoututilizinglowcostR&Dpersonnel,componentsand

materialsofemergingcountries,unprecedentedlowpriceofstrategicvehiclesforemergingcountriesisoutof

reach.

Asia'sLowCostCompactVehicleDevelopmentisdesignedtoprovidebetterunderstandingsandperspectives

onthecurrentandthefutureautomotiveindustryinemergingcountries.

SCROLLDOWNTOVIEWTHETABLEOFCONTENTS

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TABLEOFCONTENTS

CHAPTERONEPRESENTANDFUTUREOFSTRATEGICVEHICLESFOREMERGINGMARKETS

EmergingMarketExpansionStrengthensImportanceandInfluencesofStrategicCompactVehiclesGlobally

SignificanceofStrategicCompactsinEmergingMarkets

FamilyCar:OnceaLuxuryItembutNowaCommodity

SalesIncreasesofExistingModelsandbyMiddleClassConsumers

ConcurrentAdvancementofMotorizationandDiversification

NewVehicleMarketSizeandPerspectiveinEmergingCountries

NewTrendsTowardsDownsizing,DiversificationandMultifunctionalityofStrategicVehicles

FocusonMarketChangeandCompetitionwiththeAppearanceofEmergingNations

PossibilityforAClassPassengerCarstoExpandGlobalMarkets

SalesExpansionandNewUsersofA/BClassPassengerVehicles

AcquisitionofNewCustomersthroughB/CClassPassengerVehicles

WealthyStratumaSourceofProfitsfortheUpperB/CClass

CapturingtheYoungGenerationwithaB/CBaseAUV

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SolidSalesBaseDespiteReductioninMidsizeAUVSales

ExploitingGlobalEmergingMarketwith1TonPickupTrucksandSUVVariants

SteadyLightTruckDemandCreatedinAsia

GlobalPotentialofUtilityVehicles

MiniTrucksandVans:ComplementaryMethodtoPublicTransportationandInfrastructureBuilding

Market

Needs

for

Emerging

Market

Strategy

Vehicles

CompactVehicles:MajorProductinProgressingUltraLowCostVehicleDevelopment

MotorizationthroughMotorcyclesReplacementDemand

BanonUsedVehicleImportsandDevelopmentofDomesticallyManufacturedUsedVehicleMarket

DemandsforMultiPurposeUtilityVehiclesinEmergingCountries

DelayedRoadInfrastructureBuildingandEnhancementofRoadSafety

ExpandingDemandsforMotorcyclesinEmergingCountriesasVehicleDemandBase

CoordinatingGlobalResourcesforLowCostandSpecificationofStrategicVehiclesforEmergingCourtiers

CoordinatingGlobalResourcesforDevelopmentofStrategicVehiclesforEmergingCountries

CostReductionforStrategicVehiclesforEmergingCountriesinFrameworkofGlobalProcurement

GlobalVehicleMarketExpansionandPotentialforSpecializationofRolesbyCountry

AttractingAutoPartsIndustryBestSuitfortheCountryandProductionofStrategicVehiclesforEmerging

Countries

UtilizingEmergingCourtiersasSupplyforBusinessResourcesandComponents

CHAPTERTWOPROGRESSINGLAUNCHOFSTRATEGICVEHICLESFOREMERGINGASIANCOUNTRIES

Korea

PotentialforCompactVehicleDemandIncreases,ImprovementofEconomicandIndustrialEnvironmentRequired

MarketStagnationBroughtAboutDeterioratedEconomicConditionsofMiddleClassandYouth

Market

Structure

Transition

and

Potential

for

Mini

and

Compact

Vehicles

ExpectationsforNewIndustrialandEconomicPolicy

Taiwan

SeekingSurvivalthroughOverseasOperation,MotorcycleReplacingDemandtoBoostVehicleDemandatHome

WithProlongedDomesticDemandStagnation,AutoIndustrySeeksGrowthOverseas

DomesticCircumstancesConstrainedDomesticDemandIncreaseandAccumulatedReplacementDemands

StrategicVehiclesforEmergingCountriesExpandPotentialtoCreateNewDemands

Thailand

AimingatTwoMillionUnitProductionwithEcoCar;PickupTruckMarketFollowDownwardTrend

EcoCarProjectsStartedtoBecomePassengerVehicleExportHubs

PoliticalUncertaintyConstraintheMarketbutPassengerVehicleMarketRemainsPositive

AimingatTwoMillionAnnualVehicleProductionwithCompactPassengerCars

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Indonesia

Marketof200MillionPeopleCreatesMajorAutoProductionCountryinASEAN

EyeingaMajorAutomotiveProducingCountrywithHighMarketPotential

EconomicRecoveryLiftsMarketEqualtotheThaiVehicleMarketin2008

Expectation

for

Policy

Introduction

to

Create

One

Million

Vehicle

Market

Malaysia

RoadmaptoCaptureGlobalCompetitivenessRequiredinIndustryGrowthPolicy

AutomotivePolicyFocusingonProtectionofNationalVehicleManufacturers

TwoNationalCompaniesCapture60%oftheMarketunderProtection

NationalMakersSeekOpportunitiesOverseasasDomesticMarketSaturated

Philippines

SeekingIndustrialPolicytoReplaceImportedUsedandConvertedVehicles

TightenedRestrictiononUsedVehicleImportsRecoveredDomesticDemands

MotorcyclesandUtilityVehiclesComplementVehicleDemand

MoreDemandsforCompactsandUtilityVehiclesbyWealthyClass

StalematedPolicytoReplaceUsedandConvertedVehicles

Vietnam

DomesticDemandIncreaseswithLightCommercialsofEmergingBrandsPolarizedtheMarket

RapidDomesticMarketExpansionSeenin2007

Growth

Potential

Seen

in

Motorcycle

Population

and

Steady

High

End

Vehicle

Sales

India

DomesticDemandswithUltraLowCostModelstoAchieveGlobalIndustryStandard

AutomotiveIndustrySeekingGrowthwithCompactVehiclesandAutoComponents

ProgressingDiversificationofCompactPassengerVehicles

PriceandSalesNetworkBattleinLowCostPassengerandA2Segment

AimingforExportHubwithIndustrialFoundationforLowCostVehicle

Pakistan

RequiredStimulationPackagetoAchieveProductionofHalfaMillionVehiclesin2011

DrawingupPolicytoProduce500,000UnitsVehiclesinFY2011

FosteringDomesticIndustryRequiresDomesticMarketDevelopment

Aimingfor500,000UnitVehicleProductioninFY2011

CHAPTERTHREEOUTLINEANDSTRATEGYOFSTRATEGICVEHICLESFOREMERGINGCOUNTRIES

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TataNano

ProductionPlan

PurchasingPolicy

Domestic

Sales

Strategy

ExportandOverseasOperations

Bajaj/Renault/NissanULC

MarutiSuzukiZenEstilo/SuzukiKarimunEstilo

MarutiSuzukiMaruti800

Hyundai3,500USDCar

PeroduaViva

HyundaiClick/GetzKiaMorning/Picanto

-OutlineoftheHyundaiClick/Getz

SalesTrendoftheClick

ProductionTrendoftheClick

OutlineoftheKiaMorning/Picanto

Hyundaii10

Suzuki/MarutiSuzukiAStar(NewAlto)

Suzuki/MarutiSuzukiSwift/SX4/Splash

GMDaewooMatiz/ChevroletSpark/ChevroletBeat

ResearchandDevelopmentatGMDaewoo

SalesStrategiesoftheChevroletSparkandtheChevroletBeat

TataIndicaVista/Indigo

CheryQQ/A1

PeroduaMyvi/DaihatsuSirion

ProtonSaga/Iswara

ProtonSavvy

ToyotaEFC

VW

up!

EcoCar

ToyotaSolunaVios/Vios:ToyotaYaris/Vitz

TheSolunaVios/Vios:AsianExclusiveSedan

TheYaris/Vitz:GlobalStrategicHatchback

HondaFit/Jazz,City

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TheCity:StrategicSedanforEmergingMarkets

TheFit/Jazz:GlobalStrategicCompact

NissanMarch/Micra

Renault/DaciaLogan/Sandero

VWPoloFoxGolSkodaFabia

VWPolo

SkodaFabia

VWFox/Gol

Mazda2FordFiesta

Mazda2/Demio

FordFiesta

FiatPalio

FiatLinea

ChevroletCruze

ProtonGen2

ProtonPersona

HafeiLobo/NazaForza

Lifan520

GeelyFreedomShip(CK1)

BYDF0

CHAPTERFOUROUTLINEANDSTRATEGYOFSTRATEGICUTILITYVEHICLES

ToyotaAvanza/DaihatsuXenia

SalesTrends

ProductionTrends

DaihatsuTerios/ToyotaRush

DaihatsuGranMaxSuzukiAPV

Nissan

Livina

Series

MitsubishiFreeca/Adventure/Kuda(DFW)

MitsubishiZinger/Fuzion

IsuzuPanther/HiLander/ChevroletTavera

ToyotaIMV

BackgroundoftheIMVProject

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PlatformIntegrationandImprovementofLocalContent

FormulationoftheMostEfficientProductionandSupplySystemGlobally

QualityControl

Sales

NextGenerationIMV

IsuzuDMax/ChevroletColorado

NissanFrontier/FrontierNavara

MitsubishiTriton/PajeroSport

MazdaBT50/FordRanger,Everest

TataXenon

CHAPTERFIVEOUTLINEANDCURRENTCONDITIONOFEMERGINGCOUNTRIESGLOBALLYChina

TougherCompetitioninCompactandBasicSegmentstoAttractMiddleClassConsumers

UpperGradeCompactVehiclesPushedNewVehicleSales

AfterRapidIncrease,VehicleRegistrationandNewVehicleSalesExpectedtoStabilize

IndustryPolicyAimingforPrevalenceofVehiclestoGeneralHouseholdsandDevelopmentofChineseFirms

NewRelationshipbetweenUsedVehiclesandReplacementDemandsforMotorcycleandAgriculturalVehicles

Mexico

DiversificationinSubCompactMarketLiftsVehiclePopulationtoaHigherLevel

DemandLifterShiftsfromCompactstoImportedUsedVehicles

GlobalMakersSeparateLocalNeedsfromTheirStrategiesintheCountry

Product

Proposal

to

Stimulate

Market

Potential

and

Supporting

Measures

Brazil

-IndustrialFoundationBuildingtobeaPillarofUltraLowCostVehicleProduction

1LCarandFuelPolicyPushedMarketGrowth

SignsofDiversificationtowards4MillionUnitMarket

PotentialasanExportHubofModestlyPricedVehicles

Russia

WealthyClassLedMarketRecovery,HighExpectationforIndustrialModernizationinaNewGrowthPeriod

MarketReached3MillionUnitswithStrongDemandforForeignBrandVehicles

VehicleMarketinaNewGrowthPhaseafterTroubledPeriod

DevelopmentPolicyAimingatFosteringDomesticIndustryonthebackofMarketExpansion