Brands from South Korea and China will achieve some of the highest growth, while Japanese brands are set for further expansion. The predictions have been made by KPMG. It says that Asian brands could mount a sustained assault on European markets over the next five years, starting with the more price-sensitive areas of Eastern Europe.
Mike Steventon, head of automotive in the UK at KPMG, said: ‘If the Chinese and South Korean brands do make their expected play for Europe the established European companies will need to be ready. They must invest in new technologies, be at the forefront of innovation, be flexible and efficient. Simply having a strong brand is not enough.’
The annual survey of the world automotive industry published by KPMG International says that European manufacturers must learn from the lesson of their US counterparts, who may never recapture the market share lost to Asian competitors over the last decade.
The survey, based on replies from 140 senior automotive executives around the world, also paints a gloomy picture of the industry's financial health with more than a half of respondents expecting profits to be volatile or in general decline.
Steventon said: 'The challenges facing the American manufacturers should serve as a wake-up call to the European manufacturers. The irresistible rise of the Asian brands has been bolstered by South Korean and Chinese manufacturers adding to the impetus which the Japanese brands created.'