Cheap Boom

Cheap Boom

Global low cost market rises in next ten years on over 16 million vehicles to food production of low-rising cost vehicles over the next ten years to over 16 million vehicles. But the cheap boom remains limited to emerging markets, the current study to the global low cost market, the Essen marketing research and consulting firm R. L. Polk presented. In 2007 thus nearly 14 percent of the total production of passenger cars and light commercial vehicles accounted for the segment of vehicles which are offered for a price of under 10,000 euros. The production of low-cost cars focuses clearly on the emerging markets of Asia, where already half of the low cost models is manufactured with 4.7 million units. According to Polk with stakes of 10 to 15 percent, the other half distributed relatively evenly on the regions of Latin America, Japan and Europe (excluding Russia). In the future, the growth of low cost vehicles will continue and produced a volume of more than 16 million by 2017 Units can be reached.

With a production increase of more than 70 percent the segment will grow faster in the next few years as the global production, which will grow to almost 30 per cent”, as Katharina Bee, consultant market analysis, planning & forecasting at Polk. Focus on low cost production will remain in the future of Asia. Especially the first motorization in India lead to do so, that will double the volume of produced low cost models in Asia to more than nine million units. The corresponding Russian production will also be doubled by 2018 and reach over 1.6 million units. The study by Polk makes clear, grow the trees in the low cost segment not in the sky”, as Uwe Rohrig, holder of the Hanoverian consulting company international car concept (ICC), to press release.

Especially in China, the potential customers of the car manufacturers are always picky. We have it already with a relatively wide buyers to do that not only in Food or clothing sets value on high-quality products. This normal entitlement applies also in the automotive sector. The German manufacturer may therefore lag behind not the cheap fashion, but must supply the local markets with innovative premium products.” The Essen-based market researchers while also pointing out the surprising success of the Dacia Logan in Western Europe, but at the same time insist that this success story is not representative. Due to the favorable conditions to which an existing dealer network, the French parent company Renault which Polk warns not to transfer the success story of the Romanian low cost model to other providers of cheap cars. The current study comes to the conclusion that there are only minor market opportunities in the saturated markets for the segment of the family suitable for cars under 10,000 euros. By Ansgar Lange, Gunnar Sohn

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