Towards A New Order In The Global Automotive Industry How Asian Companies Catch Up To Their Western Peers

The global automotive industry faces the most influential changes since the revolutionary introduction of mass production a century ago. Latecomer firms from Asia are challenging the western incumbents. They can change the rules of the game in the industry by leapfrogging several steps in their development process. This study seeks to contribute to the discussion of latecomer firms by gaining insights into the catch up processes of five automotive companies in the passenger car segment, namely BYD (PRC), Chery (PRC), Geely (PRC), Tata Motors (India) and Mahindra & Mahindra (India). Based on learning theories and the core processes of car manufacturers, the author develops a catch up framework in order to compare automotive latecomers. The Korean manufacturer Hyundai serves as an example for a successful catch up, and provides a contextual framing for catch up processes in the automotive sector. An analysis of empirical data provides evidence for the evaluation of the catch up status of the five challenger firms. The author emphasizes the influence of institutional settings in China and India and the role of business groups that can act as facilitators for the catch up process. Finally, the study clusters the catch up strategies of the five observed companies in order to compare their approach.

Analysing developments in digital technologies and institutional changes, this book provides an overview of the current frenetic state of transformation within the global automobile industry. An ongoing transition brought about by the relocation of marketing, design and production centres to emerging economies, and experimentation with new mobility systems such as electrical, autonomous vehicles, this process poses the question as to how original equipment manufacturers (OEMs) and newcomers can remain competitive and ensure sustainability. With contributions from specialists in the automobile sector, this collection examines the shifts in power and geographical location occurring in the industry, and outlines the key role that public policy has in generating innovation in entrepreneurial states. Offering useful insights into the challenges facing emerging economies in their attempts to grow within the automobile industry, this book will provide valuable reading for those researching internationalization and emerging markets, business strategy and more specifically, the automotive industry.

An in-depth look at the Chinese car industry that sheds new light on the delicate nature of China's planned economy China's unprecedented growth over the last three decades, along with the recent financial crisis in the West, has raised questions about the superiority of state-led capitalism. In Designated Drivers: How China Plans to Dominate the Global Auto Industry, G.E. Anderson, a specialist in finance and Chinese political economics, uses the auto industry to examine how China's industrial planning works, and explores whether state involvement in the economy really is a winning formula for sustainable growth. Bringing to light the strengths and weaknesses that define the Chinese economy, Anderson finds that in some ways the government has become its own worst enemy, unable to choose between industrial competitiveness and social stability. While the economy is booming now, evidence suggests that long-term success is far from assured. Tracing the evolution of the post-Mao auto industry through thirteen case studies, Designated Drivers raises the difficult questions about the future of China that few people have dared to ask. Offers a unique insight into the Chinese economy through the lens of the auto industry Explores how successful the central government has been in spurring economic growth and the long-terms costs of intervention Uses case studies to illustrate China's explosive growth over the last three decades A painstakingly researched analysis of the Chinese automobile industry, Designated Drivers explains the risks and rewards inherent in doing business in China that anyone interested in, or already working there need to understand.

Master's Thesis from the year 2012 in the subject Business economics - Miscellaneous, grade: 1,2, Berlin School of Economics and Law, language: English, abstract: This thesis seeks to contribute to the discussion on latecomer firms by gaining insights into the catch up processes of five automobile companies in the passenger car segment, namely BYD (PRC), Chery (PRC), Geely (PRC), Tata Motors (India) and Mahindra & Mahindra (India). Based on learning theories and the core processes of automobile manufacturers, the thesis develops a catch up framework to systematically compare automobile latecomers. Korean automobile manufacturer Hyundai serves as an example for successful catch up and provides a contextual framing for catch up processes in the automobile sector. An analysis of empirical data provides evidence for the evaluation of the catch up status of the five challenger firms. The author emphasizes the influence of institutional settings in China and India and the role of business groups which both can act as facilitators for the catch up process. Finally, the thesis clusters the catch up strategies of the five observed companies in order to compare their approach. The results indicate that the observed automobile latecomers have not achieved a sophistication level comparable to incumbents in terms of capabilities. However, opportunities to accelerate the capability building process exist. Latecomers can leapfrog through partnering, acquisitions or changing the rules of the game in the industry.

Cars, Automobility and Development in Asia explores the nexus between automobility and development in a pan-Asian comparative perspective. The book seeks to integrate the policies, production forms, consumption preferences and symbolism implicated in emerging Asian automobilities. Using empirically rich and grounded analyses of both comparative and single-country case studies, the authors chart new approaches to studying automobility and development in emerging Asia.

As a window for understanding the relationship between globalization and the state's pursuit of national industrial development, this book examines how and why the Chinese government succeeded in leveraging China's international competitive advantages to modernize the country's automotive industry.

Introduction -- The Lure and Challenges of the Automobile Industry -- Institutions, Politics and Developmental Divergence -- Thailand: Early opening and Export success -- The Philippines and Indonesia: Extensive Development Arrested and Delayed -- Korea: Successful Intensive Industrialization -- Malaysia: How Intensive Development Strategies Fail in the Absence of Appropriate Institutions -- China: Revamping socialist institutions for a market economy -- Taiwan: Balancing independent assembly, MNCs, and parts promotion in a small market -- Conclusion.