TWO DIFFERENT AUTO MARKETS China’s auto market is projected to grow by 74% from 2012 2020 to a sales – total of 30.6 million vehicles. Global auto sales in 2011 were 80.1 million (OICA) or 76.5 million (IHS). China is engaged in a massive expansion of production capacity 20%-25% – growth for 2012 Upscale and larger vehicles are dominated by foreign brands; downscale and smaller brands by local brands, where the largest overcapacity is located Competition between Ford Fiesta and value brands in 2nd and 3rd tier cities Room for Growth in Per 1000 Car Ownership Notice the Curve” relationship in car ownership/Per Capital Income “S Analyze the business infrastructure that will need to accompany the rise of per capita car ownership in China Global environment for auto production Changing US standards for mileage 13 major automakers, including Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo have signed letters of commitment with the U.S. Government to upgrade the fuel economy standard of cars and light-duty trucks to 54.5 miles per gallon (mpg) by 2025. new standard is more than double the Corporate Average Fuel Economy () standard of 24.1 mpg. It is expected to save 12 billion barrels of oil and curtail oil consumption by 2.2 million barrels per day new standard also aimed at reducing carbon pollution to 163 grams per mile of CO2. With this, more than 6 billion metric tons of greenhouse gases will be curbed over the time span of the program, which accounts for more than the total amount of carbon dioxide emitted by the U.S. in 2010. vehicles
TWO DIFFERENT AUTO MARKETS China’s auto market is projected to grow by 74% from 2012 – 2020 to a sales total of 30.6 million vehicles. Global auto sales in 2011 were 80.1 million (OICA) or 76.5 million (IHS). China is engaged in a massive expansion of production capacity – 20%-25% growth for 2012 Upscale and larger vehicles are dominated by foreign brands; downscale and smaller brands by local brands, where the largest overcapacity is located Competition between Ford Fiesta and value brands in 2nd and 3rd tier cities Room for Growth in Per 1000 Car Ownership Notice the “S Curve” relationship in car ownership/Per Capital Income Analyze the business infrastructure that will need to accompany the rise of per capita car ownership in China Global environment for auto production Changing US standards for mileage 13 major automakers, including Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo have signed letters of commitment with the U.S. Government to upgrade the fuel economy standard of cars and light-duty trucks to 54.5 miles per gallon (mpg) by 2025. new standard is more than double the Corporate Average Fuel Economy () standard of 24.1 mpg. It is expected to save 12 billion barrels of oil and curtail oil consumption by 2.2 million barrels per day new standard also aimed at reducing carbon pollution to 163 grams per mile of CO2. With this, more than 6 billion metric tons of greenhouse gases will be curbed over the time span of the program, which accounts for more than the total amount of carbon dioxide emitted by the U.S. in 2010. vehicles
notessept2_1.docx