STOCKHOLM (Bloomberg) – Chinese car brands will probably increase global market share through 2015, along with Volkswagen AG and Hyundai Motor Co., according to a survey of senior auto executives by KPMG International. Chrysler Group is the most likely loser.
In the survey of 200 auto executives, 81 percent predicted Chinese manufacturers will boost their market share in the next five years; 75 percent said VW's share will rise; 72 percent forecast Hyundai and affiliate Kia Motors Corp. will advance. Forty-eight percent said Chrysler, will lose market share.
“As an individual brand, VW is the big winner,” Mike Steventon, a partner at KPMG and author of the report, said in a phone interview. “It's the combination of quality and styling that seems to be appealing.”
Expanding Chinese companies include Geely Automobile Holdings Ltd., the unit of Zhejiang Geely Holding Group Co., which bought Sweden's Volvo Cars from Ford Motor Co. in August.
VW, which is merging with sports-car maker Porsche SE, and General Motors Co. each had a worldwide market share of 9.7 percent last year, in joint second place behind Toyota, which had 11 percent, according to estimates by Andrew Close, a researcher for IHS Automotive in London.
The global light vehicle market will likely increase 6 percent to 75.9 million units this year, paced by China's 7 percent growth to 18.2 million cars, vans, and SUVs, according to IHS.
VW's truck brands
“VW's acknowledged strength is a broad product portfolio from small cars to luxury vehicles,” KPMG wrote in the report. “Through truck brands such as MAN and Scania, they are adding new segments.”
With a dominant 13 percent market share in China in 2009, VW also has a “strong base in the world's biggest growth market,” KPMG said. China has surpassed Germany as Volkswagen's largest market since 2009.
Sixty-eight percent of the respondents said Indian brands as a group would climb, while 49 percent predicted BMW AG would increase market share. KPMG didn't name specific Chinese and Indian brands.