Difference in Bric pattern of consumption challenges makers
Valor Econômico
By 2014, the participation of the Bric countries in car sales will be three times bigger. It has been a while since the industry has seen such potential. However, makers and suppliers of autoparts still have much to organize in the group made up by Brazil, Russia, India and China, according to the study of The Boston Consulting Group. Few companies have strong industrial structures in all the countries of the block. Another major challenge will be dealing with differences in consumer preference, which hinders the creation of a Bric car. The sum of the sales in Brazil, Russia, India and China increased from 15 million to 19 million between 2007 and 2009, period in which the world market shrunk from 70 million to 62 million units. For 2014, when the global market may grow something between 78 million and 87 million vehicles, the part of the Bric will already be ranging from 23 million to 27 million, depending on the circumstances. That indicates the share of the block shall jump from little more than 10% to nearly 30%.
Based on interviews with 250 leading companies in the four countries, the study shows the leaders of the car industry are still reticent and skeptical in relation to the historical highs and lows of the emerging economies. Perhaps that is the reason actions such as product development are still focused on the traditional market. "The Bric countries will be the engine of growth of the car industry, led by China, followed by Brazil, leading such trend", says Nikolaus Lang, partner of the Munich-based BCG and coauthor of the study. According to him, who analyzes the car sector with an emphasis on the emerging regions for 15 years, most companies lack homogenizing their presence around the block.
But one of the main challenges the traditional car makers had not yet encountered before the growth of the demand focusing in this block of emerging countries is noticing there is no Bric car. There isn't a model of uniform vehicle that can be sold to Brazilians, Indians, Chinese and Russians at the same time. The so-called popular car sold in Brazil - small hatchback model with a 1.0 liter engine - is quite different from the subcompact Nano, with which Indian Tata has conquered its market of origin. As regards China, the preference is for the somehow luxury and comfortable sedan, mainly in the rear seat. A more rustic car in the type of Lada goes well in Russia. But it would not have good acceptance among Brazilians, which, for the agony of engineering teams, are the most demanding regarding the relation between good, nice and inexpensive.