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Here's the new Car Revolution | Advantage Lifestyle

GM Plant Readies For Third Shift As U.S. Sales Increase In February

While Ford and Buick have come up on the latest JD Power rankings in Car quality, the US reporting the two brands at 110 and 115 defect reports per 100, the older luxury brands are dipping down with Lexus and Mercedes giving away the lead to Ford and Buick. That’s great news for America. Also with China now the World’s car market no. 1 here would be resurgent sales for Buick and hopefully Ford in that Market as well, despite China’s thrust on “indigenous innovation” that began as soon as last week, with BYD E6 EV being pushed among others.

India’s market also has some key defining characteristics this winter. Four new small car launches are reported, with the Honda Jazz coming back in a new avatar soon. The small car revolution hit by Nano has ‘electrified’ a leader like Nissan into a diversification strategy rushed into 4 different ventures in India one for selling and exporting Micra, opened in Chennai just yesterday. While current studies quote 6 million cars by 2020, the numbers will soon be revised. We personally see this uptick to 200,000 cars a month lasting some time and reaching 6 million cars a year in another 2 years maybe 6 months more than that.

The upgradation of highways and the $5 bn for highways available this year itself would go some way in plying the trend in India itself. Ford’s sales of 300K cars a month including fleet sales in the US is another good sign for manufacturers investing in quality. Toyota and Honda would have to work harder to come back. Global markets like Brazil, Australia and South Africa would also give hope to car manufacturers as Europe continues to drag its feet. The Audi and thus the Volkswagen may well be on the nice upward leg of the roller coaster, and as you well know, this leg is definitely likely quicker than imagined by the market, taking the makers by surpris. I hope everyone is using their safety belts.

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This entry was posted on March 18, 2010 by in Amitonomics, China, Emerging Markets, Financial Markets, Global, India, O'nomics, Retail Lifestyle and tagged .

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