Capping IT Off

Capping IT Off

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

Why China is the new center of the Autoworld

Category : Governance
One of my passions is cricket – that quirky game that only the British Commonwealth understands. Until recently, the home of cricket was in London (Lords Cricket Ground), and the cricket world revolved around England.
All that has changed dramatically in the past 20 years, and today England (and most other cricket-playing countries) are mere pawns in a game where the undisputed king is India.
As the number one sport in a country with well over one billion inhabitants, it doesn’t take a large percentage to watch a match on television to skew global viewing figures towards the subcontinent. The cricket world revolves around India, and the authorities have realised it.
In the automotive industry, China is having a similar impact.
Already the largest sales and production market in the world, it could account for up to half of all cars produced and sold globally by 2030 – indeed the Nobel Economics laureate, Professor Edward Prescott, has predicted exactly that.
In 2007 I had a meeting with the CIO of a Chinese Auto OEM who chastized me for referring to China as an “emerging” market. He questioned how I could be a wise leader of Capgemini’s automotive practise if I was not based in China, and told me to take off my “old world” blinkers.  The center of the Auto world was now China.
He was right then, and is even more now so. Any view of the automotive world that does not have China at its epicenter is dangerously distorted. I wonder how long before one of the major OEMs has it global HQ in China?
More about our perspectives here: Capgemini Automotive in China

About the author

Nick Gill
Nick Gill

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