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The domestic Chinese auto market has seen an increase in foreign investors to the extent that they now make up the majority of the Chinese auto market for the first time in a long while. While China is dominating the markets in technology and other industries their domestic auto market has not seen as big of advances as they would have hoped going up against bigger and more prepared foreign automobile manufacturers.

                The China Association of Automobile Manufacturers (CAAM) does mention in their annual report of the state of the Chinese automobile market that domestic Chinese car manufacturers did see an increase in domestic car sales up 7.5% from November of 2012 and up 5.5% from October of 2013. While the domestic auto manufacturers market is not growing as quickly as the foreign car market is there is still growth being seen in the domestic sector, bringing continued hope to domestic car manufacturers.

                In 2013 domestic Chinese automobile sales increased 11.5% while maintaining a 40% market share in the domestic Chinese automobile market. The Chinese government is attempting to create a series of incentives and subsidies to encourage the sale of domestic Chinese cars to the population while also instituting technology transfers between domestic car companies to level the playing field and create a stronger domestic manufacturing environment to better forge ahead in the years to come.

                Although these measures are being taken to increase the domestic market share of local Chinese car companies China is also searching for ways to profit off of the ever-booming foreign car market. The state may decrease its high tariffs on foreign cars and ease some of the restrictions on foreign automobile companies that do business in China, making it easier and more profitable for foreign car companies to do business in China.

Despite the pressure on the domestic Chinese car market to keep up with production and sales foreign car manufacturing companies are still investing more into the Chinese market than the domestic companies themselves are willing or able to. In addition to investing foreign car manufacturing companies have the advantage of putting out new models of cars at a quicker rate than the domestic Chinese car companies are able to. Consumers who like variety, therefore, are more drawn to purchase a different kind of car than the average Chines domestic model that is available. Exports of Chinese cars to foreign markets are down this year although car manufacturers hope they will increase as the year continues. As the domestic market is hit by more Chinese car regulations the export market is essential to the Chinese automobile manufacturing industry. Some cities in China have continued to regulate the sales of cars, when they can be driven, and what kind of cars can be bought due to the increasing amount of pollution affecting major cities in China. This puts a damper on the exuberant nature of the Chinese automobile consumer. The 2014 automobile year looks as though it will bring some beneficial changes to the domestic Chinese automobile market.

A specialized group of domestic Chinese auto manufacturers are seeing an increase in their ranks as the local auto markets continue to grow and change with the times. Not only is China at the forefront of research and development regarding clean energy and fuel efficient technology, but they are also becoming an increasingly large influence upon the international automobile industry as well.

                Many international car manufacturing companies conduct business in China; among them are BMW, General Motors, Toyota, Nissan, and Honda for starters. The Chinese government requires any international car company that wants to do business in the country to market its cars under different brand names and in cooperation with domestic Chinese car companies, usually in the form of a partnership or a joint venture agreement.

                This policy was instituted in part to grow the international sharing of technology information regarding the cars between the international companies seeking to do business in China and the domestic Chinese car manufacturers who can trade their expertise for much needed outside knowledge. These joint venture partnerships between domestic and international car manufacturers insure the growth of domestic car companies like Amsia Motors in addition to taking advantage of the foreign business investments international companies continue to pump into the Chinese auto industry.

                BMW has formed a joint venture with the Auto Brilliance Group which also has a partnership with Amsia Motors, a successful Chinese auto manufacturer. Together BMW and Brilliance Automotive have announced the creation of the Zinoro brand, an electric car that meets the clean energy requirements of the Chinese government while still being a decent competitor to similar car models from other international companies like Toyota.

                The Zinoro brand will build its cars at the Tiexi plant in the northeastern city of Shenyang, China, under the auspices of the BMW Brilliance Automotive Corporation. Zinoro (which means ‘honoring promises’) will join the likes of the BMW 3 series, 5 series, and X1 that are also manufactured at the Tiexi plant. The Zinoro model is estimated to go on sale in the first few months of 2014.

                The Zinoro electric car will join other joint venture models and compete with the variety of car models coming from Toyota, GM, Honda and Nissan. BMW has mentioned their high hopes for the Zinoro as well as their other existing models, citing a 5% yearly sale average this year and remaining close behind Audi as China’s leading foreign automobile manufacturer in terms of sales. BMW has seen a 7.5% increase in the first 3 months of this year in sales alone and estimates a continued level of growth after the first few months of the sale of the Zinoro.

                The BMW joint venture with the Brilliance Auto Group and Amsia Motors is doing better than the Mercedes-Benz line, which has declined in sales nearly 12% this year already. Domestic car companies like Amsia Motors will continue to benefit from joint venture partnerships like the one BMW has maintained with the Brilliance Auto Group.

While China’s production of domestic and international automobiles may not be excessive they continue to be a major world automobile market influencer. In their extensive research and development of cleaner and more efficient vehicles China has surpassed many of the world’s automobile manufacturing giants. In 2011 China produced only 12,552 electric vehicle units as opposed to one year later, in 2012, when they produced 11,241 units of solely electric vehicles which raised their total output of electric vehicle production 98.8% from the previous year. Units of production have not gone up but the increase of electrical units shows the strength of the market and the great Chinese commitment to cleaner and more efficient energy driving towards the future.

                In 2012 Chinese auto manufacturers only produced 1,311 units of hybrid cars as compared with the estimated 273,150 units that are hoped to be produced by 2017. China’s commitment to investing in clean and green car technology is represented by the draft of a new plan to renew the Chinese auto market by pumping it full of hybrid plug-in vehicle options and 100% purely electric cars in coming years. The Chinese are investing in three core tenants of the plan that include improving research and development (and implementation) of the battery power in new vehicles as well as enhancing the motor and electric controls of the vehicles they will be producing.

                To encourage consumers and automobile buyers to take advantage of the pure electric and hybrid technologies that will rock their automobile market, China is offering discounts, tax cuts and subsidies for vehicles that are labeled ‘transitional technology,’ which includes their totally-electric automobile models but not the plug-in hybrid types. China sees that their automobile market is more than just the incredible technology behind their cars, and that the consumers who will be potential car buyers need to have more benefits to owning an electric car in China’s petrol-centered environment.

                Recent reports from the Chinese automobile industry as well as the hopes of the Chinese state projects great increases and profits from the electric car market in the coming years. By 2015 estimates are up to one million electric units sold which will increase to 5 million units sold by the year 2020, the market speculates. From the initial sale of these new electric cars as well as a push from the government to promote the benefits and cost analysis of buying one of these vehicles, the Chinese are confident that total passenger car sales could be around 50% electric vehicles in the future. The estimated profits are in the millions of dollars.

                Not only is China finding a way to power through the rocky automobile market but they are doing so with a streamlined and efficient plan encompassing technological research, market analysis, and benefits to the population. Amsia Motors is one such Chinese company that is paving the way to green automobile technology through extensive research into green technology, market awareness and finally the production of professional, great-quality vehicles for the electric auto market in China.

In a study done by J.D. Power’s Chinese division, recent months have shown that the Chinese have improved both the technology behind their cars as well as the engineering. Improvements have been made to raise their domestically produced automobiles to international standards primarily in the internal systems of the cars; the engine, transmission, ventilation and the heating and cooling. The study looked at 213 car models sold by 65 different car brands while surveying around 21,000 new car owners about their experience with those new cars.  This year four Chinese automobile brands scored above the automobile industry average, according to Mei Songlin (VP of J.D. Power’s China branch), have slowly begun to revolutionize the domestic Chinese automobile market.  New car brands in China and its automobiles will enter into the Chinese market this year; despite its relative anonymity one of its brand sedans received five stars from the European New Car Assessment program proving that the Chinese are innovative and improving the quality of their cars with every passing season.  Foreign automobile companies still have the history and experience, however; according to the study only 27% of domestic Chinese sedan sales were to local Chinese automobile manufacturers. Few Chinese cars sell outside of the country of China and no Chinese automobile company is yet authorized to export and sell cars within the United States. The most popular cars sold in China with the highest customer approval rating are the Toyota’s Lexus and Daimler AG’s Mercedes-Benz in terms of quality, followed by cars from Subaru, Volkswagen AG and BMW AG. The study recommended that the Chinese automobile companies improve not only the car systems (ventilation, heat and air conditioning, engine and transmission) but the fuel efficiency and noise produced by the car. Emissions have become a very big deal in China as of late at the air quality has continued to deteriorate and drastically affect the health of China’s citizens. Fuel efficiency as well plays a role; people all over the world want cars that run longer on less gas as gas prices have also skyrocketed. China’s big cities also produce a lot of noise with the thousands (if not millions) of cars and people constantly on the move.

SOUTH AMERICA

The automobile market will grow significantly by 2025, becoming one of the top three growth markets globally for light vehicle sales and presenting opportunities for improvements in fuel efficiency and reduced CO2 emissions, according to a forecast by IHS Automotive, the leading provider of comprehensive content, expertise and insight on the global automotive industry. IHS Automotive forecasts that nearly 2.3 million additional vehicles will be sold in South America by 2025, equal to the output of 10 modern assembly plants. Most of the growth will occur in Brazil, followed by Argentina and Colombia. Brazilian lawmakers late in 2012 enacted legislation providing tax benefits aimed at encouraging manufacturers to improve vehicle efficiency and reduce carbon emissions, and increase local research and innovation. Brazil Ministry of Trade and Industrial Development (MDIC) hired IHS Automotive Consulting to help them understand the growth potential under the new law and provide guidance on how Brazil could significantly improve the fuel efficiency of Brazilian vehicles and reduce CO2 emissions by 2017. Paulo Cardamone, Managing Director, IHS Automotive Brazil, says, “The new automotive regime will promote green technology, help Brazilian consumers by significantly improving the fuel efficiency of light vehicles and, in the process, make Brazilian vehicles technically competitive with those in Europe, the U.S. and Asia. Brazil can become a net exporter of vehicles in the not too distant future.” ref: www.ihs.com

ASIA. The last twenty years have been an exciting time for the Automotive industry, given its challenges. To achieve, succeed or survive in a global market made some winners, resulting better or worse than others. Volkswagen with Tata Motor’s merger was quite interesting: as it joined force in the South Asian market. Following that Fiat-Chrysler’s with Japan’s Suzuki and Maruti, but challenges prove to be there. Hyundai-Kia enforced its market gain with lots of efforts. China revealing its might, has its very own car giant, as America’s GM recuperated from the mess of joint ventures between Chinese and foreign Automotive manufacturers. China and GM Motors General Motors launched Chinese brands resulting with rising sales across Asia. EUROPE. Europe’s revitalization came through after a price, with GM’s Peugeot-Opel division enjoying a come-back but market is saturated. Ford taken over by IBM ware company was quite the shocking move for a company that is a stranger in Automotive industry. Regarding an investment, apparently they will sell the production operation to Magna.

EMISSION FREE. Now, given that technology is improving targets for carbon-dioxide emissions are relatively at ease by offering natural-gas hybrids. Making methane gas and liquid fuels from bacteria and algae made the even stricter CO2 targets for 2025 much more attainable. While hydrogen fuel cells are at work, these are competitive only in countries where the government has mandated the provision of hydrogen filling stations. Similarly, fully electric cars are predominant only in countries that can produce electricity cheaply, such as nuclear-powered France.

Provided the market intelligence report and diligent research for the emerging markets for the last 5 years, in addition to South America and Asia – opportunity presented itself and growth for Amsia Motors.

Competitive technology, efficiency, clean and green environment friendly automotive vehicle manufacturing is the edge with the focus of being cost effective.

Therefore without further due, implementing the resources strategically for expansion and growth in the emerging markets in Asia, South America primarily apart from Africa and the Middle East.

There are over 170 auto makers in China, compared with around 35 in the in the US. By 2018, manufacturers are expected to have a combined output of 30 million cars, which would amount to an excess of 10 million units. Chinese government efforts to reduce pollution and congestion by imposing restrictions on car buyers don’t help. And the competition is growing. Foreign automakers, desperate to offset declining sales in Europe, are investing heavily in China. General Motors has plans to boost its capacity to 5 million vehicles by 2015, and has outlined an $11 billion investment plan for the next four years. Ford opened a $300 million plant that will more than double its capacity in China. German giant Volkswagen wants to increase its workforce by a third by 2018, while luxury automaker Jaguar Land Rover is looking to boost its number of dealerships in Cina to 200 from 116. Passenger vehicle exports, by both domestic and foreign companies, surged in the first four months of the year, according to the latest statistics. From January to April, exports of sedans, sport-utility vehicles, multi-purpose vehicles, and minivans accelerated 24 percent from a year ago to 194,200 units, according to the China Association of Automobile Manufacturers. Overall, automobile exports increased by a more modest 12.7 percent to 316,000 units during the same period, dragged down by a 1.7 percent dip in the exports of commercial vehicles, to 121,900 units. "China has become an important passenger vehicle export hub," said Namrita Chow, manager and senior analyst of consulting firm IHS Automotive. Rest assured, with Amsia Motors largest Global Fortune 500 Automotive manufacturing Partners – the company last week set a new sales target of 552,000 vehicles, up from a goal of 507,200 units established at the beginning of the year. The revised target represents a 24 percent increase from its sales in 2012. new-car sales in China rose 31 percent to 142,000 in the first quarter, a record for the automaker. Growth was driven by a 24 percent rise in deliveries by joint venture Auto manufacturing. Joint ventures increased sales 37 percent in April to 45,303 units on demand for new models. In July, the join venture Partners began a third assembly plant, in China, raising the partnership’s annual capacity to 750,000 vehicles from 450,000 units. Considering the import and export market’s strong competition and growth, industry experts prognosis are that the main key players will remain to grow and sustain – while the smaller local Brands trying to compete with price compromising quality in the export market may decline sharply. Given the advantage of technology, expertise, and excellence Amsia thrives forward strategically in both passenger, sports utility and commercial vehicles. As the plans for Amsia Sergipe, in Brazil is undergoing strong impacted preparations, this new market presents enormous potential to expand and succeed with great magnitude.

Jackson Barreto signs letter of intent for installation of Amsia Motors Auto plant in Sergipe, Brasil. Without further due, it is time to set the record straight about some of the misinterpretation by various media and requires strict correction about Amsia Motors. In lieu of which the State of Sergipe has been informed promptly.  Mustafa Z. Ahmed, Chairman and CEO of Amsia Motors, signed an agreement with the government of Sergipe in Northern Brazil 27th June, Thursday to invest USD $ 500 million in building an auto plant in the state capital Aracaju that is to focus on electric and hybrid car production. The project, which is the first of its kind in the history of this region, is expected to generate abundant revenue into the country, and drive increased foreign investment into both Sergipe and other states. While most of Brazil’s auto industry currently operates in the country’s southeast region, the country’s northeast region is now gaining attraction from investors. The agreement between Amsia Motors and the Northern Brazil government not only marks the launch of a plan to build the first auto plant in the region, which is also set to be the company’s first owned auto plant, but also marks a step towards automotive market growth in a region that no one ever imagined would be attractive to automotive companies.

The company’s Chairman. CEO, Mustafa Z. Ahmed, signed the agreement in the attendance of the exclusive distributor of the Middle East, Prince Faisal, and the company’s International Director of Sales and Market, Moeth Ahmed from Canada, Toronto. ” As per the Chairman, Amsia Motors is an independently operating company who does not have any shareholders – neither is Amsia Motors, an Arab investor group “. The project is projected to create new job opportunities and generate increased revenue inside Brazil. An increase in the volume of export outside Brazil by doubling the current export volume, and bringing foreign investment from China, India, and the Middle East are also expected targets. The goal is to eventually build the strongest state in Brazil with a Brazilian National brand leading to be the number one Automotive in Brazil, South America, Latin America, and Europe.  With diligent and aggressive action, Amsia intends to successfully deliver the project, ensuring complete assembly and vehicle production.

A formal agreement to initiate and administer the project has already taken place on the 10th of June in Sergipe. The states full delegate: federal state agencies, legal entities, and financial institutions, welcomed Amsia Motors senior management, Moeth Ahmed, when he arrived to negotiate his company plans.  Those who participated in the act included the mayor of the Coconut Bar, Airton Martins, state legislators, José Guimarães and John Daniel, Amsia Motors senior executive Moeth Ahmed based in Canada, the Secretaries of State for Planning, Jeferson Steps; Civil House, Silvio Santos, the interim Finance, José de Oliveira Junior, the Culture, Eloisa Galdino, the deputy secretary of the Communication, Sales Neto, president of the Association of Enterprises with Public Works and Private Sergipe (Asseopp), Luciano Barreto, assistant secretary Celio Martins among other authorities, secretaries of state, municipal secretaries, parliamentarians and representatives of institution.  “It is with great pleasure that I announce officially to the people of Sergipe that we signed a letter of intent with Amsia Motors aiming to implement a productive enterprise that has the potential to change the industrial structure of our state,” said the acting governor, Jackson Barreto, after signing the document.  The company’s CEO, Mustafa Ahmed, highlighted the professionalism and kindness with which it was treated since the first contacts with the state of Sergipe, and emphasized the company’s goal of becoming and acting as a Brazilian company: “I’m proud to be part of this moment for the growth of Amsia Motors and industrial potential of Sergipe. We had an excellent warm welcome and all the necessary information from the Government of Sergipe teams from the first moment, and this was crucial to decide to invest here. We do not want to be a foreign company installed here; we want to be a Brazilian company and committed to the future of Sergipe and Brazil.”  “Our vehicles shall bear the Brazilian flag, said the president, whose statement was translated by the Assistant Secretary of Economic Development, Carlos Augusto Franco. According to company officials, the company will be the first in the History of Sergipe state to manufacture low emission and carbon free vehicles which will be cost effective, reliable and performance based, enhancing the environment by protecting the green ecosystem of Brazil. Company forecasts suggest that models will be in test production within the next three years. Presently, the company’s headquarters and main manufacturing plant is in China. As it builds and operates its plant in the municipality of the Coconut Bar in Brazil on land near the Wind Farm, its operations in China are expected to both remain intact and develop.

Going into production, Amsia will introduce three different product categories into the market to engage and win strong market appeal. It plans to offer substantially competitive vehicle prices compared to those currently offered by vehicle manufacturers in Brazil. To achieve its goals, the International Director, has stated that the company will engage locally but use a global strategic approach. It will penetrate through price, quality and precision.  So far, incentives have been ensured by the government and the project continues to receive strong commitment from both State and Federal authorities. The state of Sergipe is also expected to provide lucrative prospects.

The project is expected to ensure economic growth by creating new jobs and attracting foreign investment. Already, there are forecasts of 4,000 jobs being created gradually. Local financial institutions have already approached the company for financing but the company’s management has yet to decide the possibilities. While Brazil’s northeast region is recognized by many for its poor infrastructure, Amisa Motors recognizes it for its uniqueness in being an extraordinary opportunity for market growth in the automotive industry. With their distinct expertise, robust financial background, and winning marketing strategy, Amsia Motors officials are confident that they can diversify the automotive market in Brazil. And with the distinct continued support of the northeast government, the region is expected to attract foreign investments to diverse sectors throughout the country.