Automotive Industry in BRIC Countries

1174
DOI: 10.20542/0131-2227-2014-9-55-65

S. Afanas'ev, Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO RAN), 23 Profsoyuznaya Str., Moscow, 117997, Russian Federation (sergeiafanasiev@mail.ru).
V. Kondrat'ev, Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO RAN), 23 Profsoyuznaya Str., Moscow, 117997, Russian Federation (v.b.kondr@imemo.ru).

Abstract. For the next decade, the future of the automotive industry lies in BRIC’ countries. Together, Brazil, Russia, India, and China will account for some 30 percent of world auto sales in 2014 while also offering significant opportunities for cost-effective R&D, sourcing, and manufacturing. The authors analyze the degree of localization of leading TNC and supplies in each BRIC country, for each function, compare localization across BRIC countries, assess the future development of these markets, compare local capabilities and resources, and identify particularly promising combinations of functions and countries. Key trends in developing countries include continuing liberalization and globalization, increased foreign investment and ownership, and the increasing importance of follow-source and follow-design forces.

The article concerns the trends and factors of national automotive industry formation in BRIC countries. Special emphasis is made on localization of R&D activities, final assembly operations and components production by global automotive companies in BRIC countries. It systemizes the factors of investment opportunities of different developing markets. It is concluded that active state regulation is playing the principle role in localization and catching-up process in automotive industry in developing countries. The comparison of the automotive industry in BRIC countries allows shedding light on the economic processes of emergence at large. There is a stark contrast in the capacities of development of the sector in these countries. This contrast serves as an analyzer between the modes of sector opening and the paths of technological catching-up that is the core of the phenomenon of emergence. The analysis and best practices presented in the topic, while focusing on the BRIC countries, are applicable also to other rapidly developing economies.

Keywords: BRIC, automotive industry, developing countries, production localization, industrial policy, state regulation


Registered in System SCIENCE INDEX

For citation:
Afanas'ev S., Kondratev V. Automotive Industry in BRIC Countries. World Eonomy and International Relations, 2014, no. 9, pp. 55-65. https://doi.org/10.20542/0131-2227-2014-9-55-65



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 4
Topical Themes of the Issue:
  • Financial Contagion Propagation in Europe under the Impact of Global Shocks
  • Regional Powers on the African Continent: Trends and Prospects
  • Investment Activity of the PRC in the Kyrgyz Republic
  • “Land Grabbing” Concept: Global and National Aspects
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.