Developing nations overtake North America in auto production
Auto-assembly capacity in the developing economies, including India and China, will exceed North America's auto production for the first time this year, a shift that should serve as a wake-up call for Canada's ailing auto suppliers, says a new for...
By PTI |
TORONTO: Auto-assembly capacity in the developing economies, including India and China, will exceed North America's auto production for the first time this year, a shift that should serve as a wake-up call for Canada's ailing auto suppliers, says a new forecast from Bank of Nova Scotia.
The total number of vehicles that manufacturers can build in the BRIC countries of Brazil, Russia, India and China will climb to 20 million units in 2008, surpassing the 17.4-million-unit assembly capacity in place in North America, the bank predicted in its latest Global Auto Report released yesterday.
"Rising vehicle production in emerging nations is particularly troubling for the Canadian auto-parts sector, because the industry remains focused almost exclusively on the domestic and US markets," Carlos Gomes, an economist with Scotia bank, said in the report.
"These markets absorb more than 95 per cent of all Canadian auto-parts shipments, but are increasingly becoming a smaller piece of the global auto industry."
Analysts have warned repeatedly that Canada's suppliers as a whole are failing to move beyond their traditional customers and markets. The largest players, such as Magna International Inc and Linamar Corp, are investing millions in new plants overseas to expand and diversify their businesses.
The total number of vehicles that manufacturers can build in the BRIC countries of Brazil, Russia, India and China will climb to 20 million units in 2008, surpassing the 17.4-million-unit assembly capacity in place in North America, the bank predicted in its latest Global Auto Report released yesterday.
"Rising vehicle production in emerging nations is particularly troubling for the Canadian auto-parts sector, because the industry remains focused almost exclusively on the domestic and US markets," Carlos Gomes, an economist with Scotia bank, said in the report.
"These markets absorb more than 95 per cent of all Canadian auto-parts shipments, but are increasingly becoming a smaller piece of the global auto industry."
Analysts have warned repeatedly that Canada's suppliers as a whole are failing to move beyond their traditional customers and markets. The largest players, such as Magna International Inc and Linamar Corp, are investing millions in new plants overseas to expand and diversify their businesses.
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