Brazilian government sources tell Reuters that Jaguar Land Rover will build a new factory in Itatiaia, Rio de Janeiro state, investing about 1 billion reais ($436.9 million) in building and equipping the facility. An official announcement is scheduled for next week and production could being within 2 years. The plant would employ 500 to 700 people. “Everything is very advanced with only minor details to be worked out,” said Luiz Carlos Ferreira Bastos, Itatiaia’s mayor.
Earlier this month, JLR said that it plans to expand manufacturing and increase production in overseas markets, particularly in China and Brazil. The move follows decisions by BMW, Mercedes-Benz and Audi to build assembly plants, encouraged by government plans to raise taxes on imported vehicles at the same time as it is offering tax incentives to automakers that invest in Brazilian operations. (Read More…)
The importance of South America to Ford Motor Company’s plans can be seen from the fact that chairman Bill Ford went to Brazil to introduce the Ka Concept, an entry level hatchback for urban consumers in Brazil and other global markets, particularly developing countries. FoMoCo says that the car was developed by Ford Brazil. Of course, the Ka Concept is a concept car in name only and when the production Ka arrives next year it should be very close to what was revealed this week. It’s also very similar to the small sedan whose spy shots TTAC featured recently that our sources tell us will be the Ka sedan.
Speaking at a ceremony at Ford’s Northeast Industrial Complex in Camaçari, Bill Ford said, “Ford has a long history in Brazil, bringing development, jobs and growth to the region. As an integral part of our global growth strategy, we are committed to bringing world-class products to Brazil and to helping the region create global vehicles for the rest of the world.” (Read More…)
Emerging markets have been a big theme at TTAC for the past few years, with our coverage going beyond the cursory articles on automotive developments in the BRIC countries. Our articles on places like North Africa and Indonesia aren’t always the most popular, but we keep an eye on them for a very important reason. These countries are the final frontier for growth in the automotive sector.
In India for the relaunched Datsun brand’s first car, the Go, CEO of the Renault-Nissan alliance, Carlos Ghosn, announced that Renault and Nissan will jointly develop a platform for low cost and ultra low cost cars aimed at India and other emerging markets, which Ghosn believes will make up 60% of the global automotive market by 2016. To do that, the alliance will spend another $5 billion on investments in their Indian operations over the next five years. Renault-Nissan is committed to using India as its global hub for emerging markets, developing the cars there as well as assembling and exporting them. (Read More…)
If you are the executive of a car company, then you better be with both feet in the emerging markets, or seek other employment. Markets in the U.S., Europe and Japan are saturated and off their peaks. At the same time, people in the world’s most populous countries are trading in their mopeds for cars, and this is where you want to be. Sadly, Detroit appears to be underrepresented in these markets. (Read More…)
With the largest economy and biggest population in Southeast Asia, Indonesia also has one of the lowest rates of car ownership. Although the market is set to expand by more than 50 percent in five years, Toyota dominates 90 percent of that market – and General Motors wants a piece of it.
Since the Tokyo Auto Show and some Scion scuttlebutt have us on something of a Daihatsu theme here, I thought I’d show a bit of what the small car specialists are up to these days. The truth: despite the brand’s futuristic showcar image projections, Daihatsu mostly plays in the rough-and-tumble entry-level segments of emerging markets, where the cars are small and the margins can be even smaller.
And it’s had better luck there than in the so-called “mature markets.” Though the third generation Charade flopped on the American market amid much popular ridicule of its name (and, according to gearhead lore, oversight of other favorable qualities), the previous generation became the FAW-Tianjin “Xiali,” one of China’s most ubiquitous cars. Now Daihatsu is ditching Europe and hustling strangely cool little mini-MPVs built in Indonesia with the taglines “it’s very cheap” and “we build them compact.” Who needs developed markets? (Read More…)
Designed to be the world’s cheapest car, the Tata Nano is supposed to compete with scooters and three-wheelers rather than full-priced, global-brand vehicles. But the Nano has already seen several price increases since the target MSRP of $2,500 was announced, and the price in India for a base-level Nano is now about $2,870. And when you talk about such low prices, even small increases can wreak havoc on expected volumes, and as a result the Nano is turning into something of a flop (helped along by its pyromaniaproblem). (Read More…)
With a massively growing population, and no Chinese-style national one-child policy in place, sterilization campaigns in India’s provinces and municipalities are far from uncommon. But now, in the Rajasthani district of Jhunjhunu, officials in charge of sterilization campigns have found a new incentive to encourage Indians to undergo the procedure: the subcontinents growing obsession with automobiles. Britain’s The Independent was the first Western news outlet to report on the scheme, which offers those undergoing sterilization
a coupon for a forthcoming raffle, with prizes including a Tata Nano car, motorbikes and electric food blenders.
GM knows where the growth is: In the emerging markets, BRICs and beyond. GM announced today it will “invest $150 million in the reactivation of its Bekasi manufacturing facility in West Java, Indonesia.” (Read More…)