Expected automotive industry profit growth
20% growth is expected by 2020 in Established markets, such as South Korea, North America, Japan, and, Europe. 65% growth is expected in BRICS, mainly China.
OEMs can also target the Chinese After-sales market. There would be a drop in markups for electric vehicles. Profits based on derivatives will stagnate. Derivatives in the market will exert pressure on profitability.
There is a growth opportunity in the smaller vehicles segment. These are micro-cars, subcompacts, and, sub-minis. The sales could reach 30 million in 2020. 60% of the market is in emerging economies. The target segment will be the urban areas.
Aftersales automotive parts revenues will increase by 20 percent to 100 billion Euros. The low-cost business model segment will get profitability.
Sale of cars with network solutions will rise by 22%. The sale of cars will increase by 30% from 2012. Sale of traditional cars will increase by 4%.
Consolidation is required in the United States for addressing growing overcapacity in Europe.
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