Truck industry 2020: The future is global - Roland Berger

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Automotive Competence Center
2.3 The advance of globalization – No longer one-way traffic
As we saw earlier, established triad OEMs are increasingly pursuing a
strategy of globalization in the hope of compensating for the lack of growth
on their domestic markets. But they're not the only ones to have noticed
that there is money to be made in emerging economies. Local OEMs –
especially those in India and China – have also picked up the trail.
These manufacturers are steadily increasing their global market share.
Traditionally strong in the low-cost segment of the truck market, they are
now gradually building capacity and entering the higher-standard segments.
Many acquire the necessary technology by committing to joint ventures
with triad market manufacturers and/or key suppliers. The number of
such partnerships is growing almost by the day: Examples include the joint
venture between Volvo and Eicher in India and between IVECO and SAIC
in China. As Figure 5 clearly shows (see below), both triad and emerging
market OEMs plan to sharply increase the revenue they generate outside
their home markets between now and 2020 – primarily in the world's
fastest-growing regions.