Emerging markets looked like a license to print money for hard-pressed vehicle makers for a while, but times
are changing as economic frailties curb demand and foreign exchange turbulence makes business volatile
Traditional markets are bringing in the profits with US sales sprinting ahead and Europe’s reviving more
slowly, while China’s expansion continues, albeit with investors becoming more nervous about the possibility
of the long awaited banking meltdown.
A report by LMC Automotive entitled “Are Emerging Markets the new Achilles heel of the Automotive
Industry” points out that several emerging markets are under performing and the outlook for vehicle sales in
previously high growth markets is being downgraded.
“While the US, China and Western Europe continue to be likely sources of expansion in 2014, driving our
outlook for the year, a number of large and previously dynamic emerging markets have moved from growth
to stagnation, or even outright contraction,” said Pete Kelly, managing director of LMC
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