Industry Trend Analysis - Autos Investment Round-Up: India Joining Developed Markets And China In EV Race - JAN 2018

BMI View: Electrification remains the clearest trend in the Q317 Autos Investment Round-Up with India becoming the newest competitor to join the race to establish a domestic supply chain for EV production. Another theme has been l arger middle-income co untries such as Brazil and Russia coming back into favour among carmakers as they prepare for a strong sales recovery in both these markets.

Our regional investment round-ups for Q317 have captured 104 new investment projects with 55 of those publically announcing the value of their investments. Together the publically announced investments are worth USD18.18bn. Compared to Q316, the number of projects has increased 19.5% y-o-y while the total value of all investments expanded 14.1% y-o-y. This increase represents not only a response to improving sales prospects globally for the 2018-2021 period but also the process of change occurring in the industry as traditional players invest in non-traditional technologies, particularly electric vehicle (EV) products.

Across most of the regions, total investment in value terms increased with more developed markets such as North America and both European regions seeing the biggest absolute gains. The one exception to growing investment values globally is in Asia where total investment values fell by more than USD1.1bn ( see chart above). Looking at a regional breakdown in terms of the number of projects, European regions have accounted for the majority of the 104 projects announced, followed by Latin America, Asia and North America ( see chart below).

Big Gains For Developed Markets
Value Of Announced Projects, USDmn
Note: Values for 55 out of 104 projects in Q317 & 66 out of 87 in Q316. Source: BMI

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