Emerging markets are an important source of growth in the automotive industry. We have been focusing on three primary types of emerging markets:
- Developing countries such as China, India and Brazil, where economies are growing rapidly. Developing countries are projected to account for the highest growth in demand for vehicles and personal mobility.
- Revitalizing economies including countries such as Russia that are experiencing periods of high growth after prolonged periods of economic stagnation. Revitalizing economies also include areas within developed economies that have experienced decline but are undergoing economic renaissance.
- High-growth niches within developed markets such as the United States and Europe, which overall show little growth in sales volume. Some of these niches include hybrid vehicles and other advanced clean technologies; smaller, more fuel-efficient vehicles; luxury vehicles; crossover vehicles; and vehicles that run on flexible or alternative fuels such as ethanol and biodiesel. Many of the high-growth segments in developed automotive markets reflect increased demand for more sustainable mobility solutions.
All of these types of emerging markets represent a significant business opportunity for Ford, and also offer us the chance to provide personal mobility options that improve environmental and social well-being. In developing countries and revitalizing economies, customers are actively seeking increased access to personal mobility. Meeting the needs of these customers will help them to improve their economic opportunity and quality of life. In developed markets, increased demand for hybrids and other advanced clean technologies enable us to bring to market technological innovations that not only reduce environmental impacts today, but also have the potential to improve the environmental performance of all our products over the long term.
Emerging markets also pose challenges. For example, the majority of potential consumers in developing countries survive on less than five dollars a day. As a result, Ford will need to develop new products, services and business models that are accessible to these consumers, and effectively and profitably meet their mobility needs.
More importantly, unless developing countries adopt more sustainable approaches to personal mobility than those used in developed countries, greenhouse gas emissions and traffic-related fatalities will continue to increase, and congestion will bring mobility in growing cities to a grinding halt.
Ultimately, sustainable mobility solutions will be required across all markets. But the development of more sustainable options – whether for developing country markets or high-growth niches in the United States or Europe – requires a significant investment in new technologies and coordination between automotive companies, fuel and energy companies, governments and consumers.
To date, Ford is focusing efforts on:
- Expanding our product offerings in developing countries and revitalizing economies
- Taking a new approach to personal mobility in developing countries
- Developing advanced clean technologies that meet market needs and improve environmental performance
