General Motors and Volkswagen doing well in Brazil and China, not so much in India and Russia



BRIC means Brazil, Russia, India and China, four countries that are on the high speed track to economic development with about 5% GDP growth rates. A high GDP growth means high consumption of goods like cars, ACs, and other luxuries. This explains why all the major car makers in this world are concentrating their efforts on the BRIC countries. But all’s not well with the growth rate at Russia and India, which are lagging behind markets like China and Brazil. Car sales too, have suffered in India and Russia, even as they continue to show strength in China and Brazil.

2013 VW Polo R WRC

2013 VW Polo R WRC

Major car makers like General Motors and Volkswagen are preferring to focus on Brazil and China, markets where they’re launching customized products to win market share. The car makers together sell about 7 out of 10 new cars in China. In India and Russia, these car makers are launching car variants that have already been on sale in other countries and it isn’t surprising that both GM and Volkswagen are yet to strike it big in India and Russia.Car sales in both these countries are not expected to see a major rise until 2015. So, don’t expect major fresh launches from Volkswagen and General Motors until then.

2013 Cruze facelift

2013 Cruze facelift

India is seeing many car makers not going ahead with their expansion plans due to the slow market. The latest such announcement has come from Maruti Suzuki, which is delaying its Gujarat factory.  Both Mahindra and Tata Motors will also not be launching new products until 2015 and the same is the case with Toyota as well. So, the Indian auto sector seems to be in for a tough couple of years as the Indian rupee is also depreciating steeply against the US dollar. For car discount hunters in India, there has not been a better time in the past half decade at least.

Source: IBtimes

Recommended for you

1 Comment

  1. sandeep

    August 28, 2013 at 9:47 pm

    that is simply as ICB already said they don’t launch many products. where is the Golf? atleast the can launch the upcoming new Golf Plus here which can sell in good numbers and Golf GTD to make brand image and its a diesel to. and also they has to increase localization of the Polo/Vento, Jetta & Passat to make the cars cheaper. and assemble the Touareg as CKD here. also where is the facelifted Beetle? and why they don’t bring the Touran/Caddy here can give a good competition against the Ertiga & Innova. they also has to make the service for cars cheaper. so in short they has to bring the new Golf Plus, Golf GTD, Touran/Caddy, Touareg CKD, facelifted Beetle and may Passat Alltrack here.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>