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"The Early Bird Catches the Worm"

Low cost cars emerging globally

2006

The imminent threat of low cost cars entering the North American and European markets is keeping OEMs and the automotive press busy speculating. Will low cost cars represent a growing market segment? Will the development of such a segment negatively impact established OEMs? Because potential volumes and key success factors are ill-defined, it is impossible to say which companies will experience this emerging segment as a threat and which will be able to approach it as an opportunity..The objective of this study is to determine the potential of the low cost car segment and to identify the hurdles OEMs must overcome to benefit from this segment.We initiated this study to shed light on:

  • Potential volumes of demand
  • Most interesting markets
  • Supply of low cost cars
  • Activities of established OEMs
  • Key success factors
  • Opportunities and threats for the global automotive industry

In this study, we would like to give our view on the most important aspects of this complex, yet very promising topic: the global "low cost car."

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