The automotive industry in Korea, Brazil, China, and India is currently going through
             impressive growth. Governments have played a key role in the evolution of the industry in all
             these countries. The Korean industry has made the most significant progress and is now
             exporting cars to developed markets. It is the only country that invested in R&D for product
             development, retained management control in joint ventures with multinational companies
             (MNCs), and had ambitious export targets. The industry in Brazil is controlled entirely by
             MNCs. Although this has led to growth and adoption of lean production, indigenous product
             development is lacking. Tariff barriers have come down, forcing domestic production to
             become more market-responsive. Fluctuating tariffs and taxes, and cyclical demand have
             characterized the industry. Indian industry is experiencing a revolution with rapid growth and
             the entry of 9 MNCs and plans for 3 more to enter in the next two years. The Chinese industry
             is also growing very rapidly although it is still highly fragmented. Passenger cars are only
             15% of total vehicle production in China. Demand in Brazil, India, and China is highly price-sensitive and growth is led by the demand for a small car. Higher taxes on mid and large-size
             cars give the small car a big price advantage. Import duties for components imply that the
             supplier base in these countries needs to develop fast. The supplier industry could become a
             A major implication is that the future in China and India, the two biggest potential markets
             with the highest growth rates, is uncertain though bright. Governments seem to appreciate the
             necessity for stable policies and progressive deregulation, and regard the automotive industry
             as one of the pillars of economic growth. However, uncertainty exists about the extent of
             growth, the degree to which suppliers can meet demand, and the number of players that will
             be able t...