As massive new car markets emerge around the globe, it is interesting indeed to see how the big players in global car-making are investing their budgets in the future. The most important of these, perhaps, are China, India and Brazil, countries with burgeoning middle classes that are hungry for high quality car brands that offer a sense of prestige.
With the huge profits that are up for grabs in these emerging markets, no car manufacturer can afford to not have a production facility in at least one of these states.
Ford, for example, is investing 612 million pounds (a billion dollars) into a new factory in Gujarat, India. This is its second production line in the country and will help the company meet its target of increasing global sales by 50% over the next four years.
As western resources go east in order to ensure continued success, so eastern resources go west (ish). We recently blogged about the Chinese company JAC, which is investing a similar amount (up to 900 million dollars) in Brazil, where, once again, big opportunities await those who can establish themselves as a leading brand.
This pattern of investment can be seen across the globe, and certainly in Britain. Japanese, Indian and Chinese car makers have all invested, or promised to invest, huge amounts in their various production facilities around the globe.
The economic benefits to developing countries, though, are perhaps most pronounced. As well as the obvious job benefits for people in places like India, there are a wide range of knock on services that spring up around greater car use; insurance and annual breakdown cover services to name just two.
It’s an exciting time in global car making, and one that is changing on a daily basis.