Paris Auto Show looks to China for Post Crisis Success

Reuters has just published an article stating what people should expect in the Paris Motor Show that will be held today. Aside from concentrating on the Chinese market, automakers like BMW will also be offering greener options for the environment. Here’s an excerpt of the article:

Carmakers gathering in Paris this week will show off the cars they hope will win them access to booming emerging markets like China, while industry watchers seek clues on how the recovery is progressing closer to home.

At the last Paris Auto Show two years ago, carmakers had yet to comprehend the full scale of the crisis that would engulf the industry, forcing bankruptcies and favoring alliances as demand for new cars slumped and production plummeted.

Comments on how the still-fragile recovery is expected to progress in European markets — now deprived of the scrapping incentive schemes that brought them back from the brink — will be closely watched at this year’s event.

“As much as Europe has been bailed out by scrapping programs and 2010 has turned out to be a better year than expected, I’m afraid that’s little comfort because people still feel there is something bad coming up,” said Nomura automotive specialist Michael Tyndall.

“Any reassurance will be welcome. I’m not convinced the manufacturers will be in a position to give it,” he added.

Carmakers burned by the steep fall in demand before governments stepped in with scrappage bonuses will be keen to showcase the models they hope will win them customers overseas in the emerging markets seen as a safer bet for growth.

China, which last year overtook the United States as the world’s largest car market, is growing, although some see forecasts of as much as 25 percent year-on-year expansion — to around 17 million units sold — as overly optimistic.

“It’s an interesting model because its key market is deemed to be in China,” said Tyndall. “That, if anything, shows you where the power in the automotive industry is moving towards.”

Green growth

The show’s other main focus will be on green technologies.

At the last Paris show carmakers spoke of their ambitious plans for electric vehicles (EVs) and hybrids designed to meet toughening emissions standards. They have now reached the moment of truth as the cars go on sale.

“This will be the first auto show ever where green cars are shown not only by technical teams, but by marketing executives because these models are on sale soon,” said Francois Roudier, spokesman for French carmakers’ association CCFA.

Fully electric cars could be the stars of the show.

Source: Reuters