After the US President’s comments on China and India’s consumerism as being responsible for rising oil prices, the Canadian Industry Minister Jim Prentice, on Wednesday, has stated that cars from these two countries could invade their nations soon.
The cheaper cars, owing to cheaper inputs costs in these countries will make it more attractive for US and Canadian car buyers. The price advantage will be something that the developed nations can not ignore. Cars had become a necessity in these countries whereas, they were considered as a luxury item in developing countries. At one point, the business of car companies like Ford and General Motors became bigger than most national GDP’s including India.
However, the trend has now reversed and the very lifestyle they were promoting has become a challenge to cub down. India and China have reported high growth of economy in the last decade. The domestic companies have leapfrogged several generations of development and learned quickly from their Western counterparts, who were eager to tap large markets. They are quick learner and now ready to sell their wares in US and Canada. The North American countries are now crying over spilt milk.
Submitted by: Venkatesh G
I agree with Venkatesh that US and Canada have no reason to complain after having showed the path of materialism. It is their own mantra that has boomeranged on them.
China and Indian are only trying to emulate the lifestyle promoted by American citizens. blaming them is like blaming themselves for having started the issue in the first place.
Canadian Minister is right that North American Car Manufacturers will loose out in the long run when it comes to cost and fuel efficiency. The global oil prices have almost doubled and global warming is spreading havoc in several countries. The trend of US and Canada supremacy over car manufacturing will soon become history. That's a concern a minster should addresses in his home country.
It is a fact that consumer they promoted is turning into their Frankenstein. The fear arise more out of the fact that cars will longer be dictated western likes and dislikes. Maybe they have to just bow down to the market forces and let its take its own course.
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