Quote:
Originally Posted by Hitman1970
On a recent flight to DC I sat next to a financial consultant. I started talking about the woes of the Big Two. (Chrysler is doomed.) He was far more interested in talking about two companies. Mahindra and Tata motors.
He framed the discussion in this way. He asked how many autos do we in the US for every one hundred people? The answer is about 70 for every hundred man, woman, and child combined.
He then asked how many cars for every one hundred Chinese or Indian people? The answer was about two or three cars for every one hundred people from China or India.
The U.S. replacement market is not appealing to investors. They are drooling at the thought of the Chinese and Indian markets.
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Good point and this is a key for all the vehicle makers.
In the US there are about 305 million of us. When you discount that number for children, the aged, the infirm and the incarcerated ( the largest number in the world ) the 'potential' number of drivers is about 250-260 million citizens. We currently have about 265 million vehicles on the roads. DING!!! One for one. All our sales are essentially replacement sales. Only the general growth of the population will increase sales. Saturated.
In China, doing the same math, with a population of 1.4 Billion people there is about 1 vehicle for every 7 potential drivers.
In India, same math, with a population of 1.1 Billion people there is one vehicle for every 17 potential drivers.
Less restrictions and less oversight. HUGE upside potential in Asia and India.
Unions, EPA, Environmentalists, Stockholders, Analysts, FTC, SEC and very small upside potential.
Door A or Door B?