In keeping with auto industry trends, leading automobile manufacturers are turning to Asian markets that appear set to grow immensely over next decade. Auto markets in U.S., Europe and Japan have almost matured as a result of saturation and appear set to decline through next decade. In contrast, auto markets spread over entire Asian continent (with exception of Japan), are constantly increasing in size and will be destination for most of globally leading auto manufacturers.
Auto industry trends reveal that emerging markets of developing nations of Asia especially China, and India are backed by their huge population growth rate, to add to growing national economy of these two nations.
Rapid growth of national economy of BRIC countries (including Brazil,Russia, India, and China) have enabled a growing section of population of these countries to purchase cars. Global surveys conducted recently reveal that within next ten years, these emerging auto markets will account for nearly a whooping 90 percent of global auto sales growth. As a result of this, leading auto manufacturers of world are setting up factories in emerging markets, in order to serve potential consumers better as well as reduce manufacturing and shipping costs. In addition, these arrangements are enabling leading global auto manufacturers to compete with local auto manufacturers, that were flourishing in absence of quality competition.
Prosperity of national economy is reflected in rising per capita income of developing nations. Therefore, increasing gross domestic product and per capita income have raised purchasing ability of population that constitutes these emerging markets.
As a growing percentage of population in developed nations age rapidly, in comparison to rest of world, these aging numbers necessitate cars to fit physiological change of world population.