PwC Autofacts anticipates that about 80 percent of global growth from 2010 to 2017 will come from emerging markets, and 34 percent of that forecast will come from China alone. This prediction is also the opinion of automotive CEOs surveyed, with 64 percent indicating that they are particularly interested in China -- a response that is 25 percentage points above the overall cross-sector average.
China is now the largest automotive market with sales surpassing the U.S. in 2009. China will continue to play a vital role in the automotive industry manufacturing strategies. There are already more automotive assembly plants in China than anywhere else in the world.
"Automotive companies that have made strategic decisions to invest in China and forge joint ventures with Chinese partners are seeing strong revenue growth because of the actions taken over the last decade," said Rick Hanna, global automotive leader, PwC. "Automotive companies recognize the importance of the domestic China market share. However, long-term sustainable profits will still be dependent on producing vehicles that consumers want to buy at the right price. This is as true in China as it is everywhere else in the world."
The survey results indicate that innovation across the supply chain is critical to meeting consumer demands. For decades, the automotive manufacturers and suppliers have closely integrated to drive product innovation and this trend continues to accelerate. Results indicate that 76 percent of automotive CEOs plan to change their corporate strategies to foster product innovation across the supply chain.
"Today, the supply chain is more diverse than the industry has seen in the past," explained Hanna. "The supply base and partnerships have expanded to include battery makers, technology companies and energy companies to advance the development of electric vehicles and the infrastructures to support future demand and the technology platforms inside today's vehicles."
