The pace of convergence is increasing, with 61 percent believing BRIC customers will demand the same quality, safety and reliability as mature TRIAD consumers by 2018.
China is clearly the top choice for investment, followed by India, with Russia and Brazil in third and fourth places respectively. Significantly more respondents from the BRIC countries (compared to their TRIAD counterparts) are increasing their investment in South Africa, Colombia, Indonesia, Turkey and Vietnam.
As their export drive intensifies, BRIC automakers are focusing on South East Asia, with Eastern Europe and South America the next two most promising choices. Seventy percent of respondents say that Eastern Europe provides the best hub for entering Western European markets.
Compared to our previous 2012 survey, Managing growth while navigating uncharted routes, respondents forecast exports from the BRICs to grow more quickly. 36 percent feel Russia will sell over a million vehicles overseas within the next 3-5 years.
Rising barriers to entry
However, it is getting harder to export into or set up production facilities in the four main BRIC markets, with environmental restrictions the biggest obstacle, while import/export duties and governmental interventions are the fastest rising barriers – particularly India and China.