Advanced Search

The Automotive Industry in Emerging Economies: A Comparison of Korea, Brazil, China and India

Research and Teaching Output of the MIT Community

Show simple item record Mukherjee, Avinandan Sastry, Trilochan 2002-09-04T17:25:36Z 2002-09-04T17:25:36Z 2002-09-04T17:25:37Z
dc.description.abstract The automotive industry in Korea, Brazil, China and India is currently going through impressive growth. Governments have played a key role in the evolution of the industry in all these countries. The Korean industry has made the most significant progress, and is now exporting cars to developed markets. It is the only country that invested in R&D for product development, retained management control in joint ventures with multinational companies (MNCs), and had ambitious export targets. The industry in Brazil is controlled entirely by MNCs. Although this has led to growth and adoption of lean production, indigenous product development is lacking. Tariff barriers have come down, forcing domestic production to become more market responsive. Fluctuating tariffs and taxes, and cyclical demand have characterized the industry. Indian industry is experiencing a revolution with rapid growth and the entry of 9 MNCs and plans for 3 more to enter in the next two years. The Chinese industry is also growing very rapidly although it is still highly fragmented. Passenger cars are only 15% of total vehicle production in China. Demand in Brazil, India and China is highly price sensitive and growth is led by the demand for a small car. Higher taxes on mid and large size cars give the small car a big price advantage. Import duties for components imply that the supplier base in these countries needs to develop fast. The supplier industry could become a bottleneck for growth. en
dc.format.extent 34900 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.subject automotive industry en
dc.subject Brazil en
dc.subject India en
dc.subject emerging economies en
dc.subject China en
dc.subject Korea en
dc.title The Automotive Industry in Emerging Economies: A Comparison of Korea, Brazil, China and India en

Files in this item

Name Size Format Description
Sastry2.pdf 34.08Kb PDF

This item appears in the following Collection(s)

Show simple item record