For the auto industry, 2011 has been a year of feverish growth. Worldwide, 58.9 million cars were sold in 2010, and this year, the figure is expected to rise to 62.1 million. Projections suggest sales in excess of 65 million passenger cars in 2012 and over 75 million units in 2015. Two factors are driving this growth: On the one hand, the economic recovery in classic European markets and the U.S. is taking hold in the wake of the slump in 2009. The socalled cash-for-clunkers initiative in Western Europe continued to influence sales well into the first half of this year. The other, more important factor is the expanding market in China. The demand for cars in the People’s Republic is considerable. Disposable incomes are steadily rising and market saturation relative to market potential is still thin. China’s global market share in cars sold has already climbed to 20.1 percent and is poised to keep increasing. Then again, China is not the only growth engine in the automobile market: India is moving in the same direction. The year 2011 also marks a major auto industry anniversary. In 1886, Carl Benz filed a patent for his motor vehicle. This event is considered to be the dawn of the modern automobile. Shortly thereafter, Gottlieb Daimler and Wilhelm Maybach followed suit.
Now, 125 years later, Daimler AG is one of the most successful automakers, and Mercedes has reclaimed the status of the world’s most valuable automotive brand in the Best Global Brands Ranking 2011. With its core Mercedes-Benz brand, the Daimler group is a benchmark innovator. For years, it has been pursuing research into fuel cells. Now hybrid vehicles are on the street, and an electric vehicle is in the pipeline. Together with specialty chemicals
manufacturer Evonik, Daimler established a joint venture for the production of lithiumion batteries that will power the Mercedes-
Benz electric car set to debut in 2012. Indeed, innovation permeates the entire automotive sector. For decades, the focus has been on innovation in product design, production methods, and technologies. But today, more and more automakers are also developing innovative mobility and rental-car share concepts. Daimler’s “Car2Go” mobility project, which resembles the archetypal car-sharing concept, is being launched in Canada, the U.S., and Germany. What’s new about the model, however, is that after it has
served its purpose, the vehicle can be parked anywhere within a defined geographical area. Meanwhile, Peugeot has already kicked off its “Mu” concept, and Volkswagen has entered the car-sharing market with its “Quicar” approach. These concepts are being buoyed by the changing mobility needs of young urban consumers. There are two positives to the initiative: not only are the vehicles
equipped with electric motors and therefore better for the environment, but beacuse users share the cars, the environmental impact is also lessened. For many of the world’s trafficplagued
big cities, this is one way to sensibly evolve personal mobility.
Some 125 years after the invention of the automobile, electric vehicles are beginning to roll off the assembly line, headed up by
the Nissan Leaf and soon followed by the Mitsubishi i-MiEV, Chevrolet’s Volt, the Opel Ampera, and the E6 developed by Build Your Dreams (BYD). And the strategies involved with the rollout of these innovative power train concepts have been noteworthy. With
the Prius, Toyota integrated its hybrid drive into a totally new model. This precedent inspired Audi and its e-tron sports car, and in mid-2011, BMW announced the “BMW i” as a sub-brand for the so-called Megacity Vehicle. Currently, branded sustainability concepts are being prioritized over sustainable brands. As such, it is not surprising that Toyota occupies the numberone slot among the Best Global Green Brands 2011, with VW and Honda ranking sixth and seventh, respectively. The positive rankings for automotive brands corroborate that innovations in sustainability have become a
hallmark for success in the sector. Taking it a step further: those makers who fail to anchor sustainability and ecological stewardship
in their brand values will be passed over by tomorrow’s consumers.
Another change suggests a turning point in the automobile’s 125-year heritage. Until recently, the U.S., Western Europe, and Japan were the big auto industry players, but now, the cars have a new center of gravity: China. Even if the Best Global Brands rankings do not yet list a Chinese brand, the country is literally turning the auto industry inside out. While joint ventures with foreign brands are still
dominant in China, the acquisition of Volvo by Geely implies international ambitions. So does BYD’s desire to collaborate with Daimler, and VW, and Shanghai Automotive (SAIC) has plans with the Roewe (formerly Rover) brand. Additionally, China’s Chery brand already has a presence in Eastern Europe with low-budget compacts. China is evolving its own auto industry—quickly,efficiently, and successfully.
Source: Interbrand Article over Automotive Industry
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