The international automobile industry is the midst of a radical change driven by the emergence of BRIC states and the global financial crisis.

In a study entitled `Shifting Centers of Gravity - The End of the Automotive Industry As We Know It', international management consultancy firm Arthur D Little has delved into the details of the tectonic shifts that we will witness in the industry as also the future scenarios and the most important spheres of activity.

The study says that the emergence of the BRIC states has changed the economic fabric of the global order. The BRIC states have sufficient purchasing power and large amounts of capital to use for investments and acquisitions. Chinese premier WenJiabao announced publicly the other day that he would like to go on a world-wide shopping trip. The Tata Nano city car which has begun production, the Chinese carmakers' interest in Opel and Volvo as also the problems of former auto majors General Motros and Chrysler are examples that illustrate the dynamics and scope of the change processes, it said.

According to Marc Winterhoff, director and head of Arthur D Little's Automotive Practice, the current exclusive club of global players will extend to include five new members from China and one new member from India by the year 2020.

The study has identified seven central trends, which will cause a shift in the market forces as also a shift in global emphasis in the automobile industry in the coming years.

The study points out that the established high-volume producers will be subject to severe pressures as the emerging OEMs will focus on the new global middle segment where they will have to compete with high-volume producers. The customers in the new markets will demand vehicles with good basic functionality without extra features and these customers would be extremely price conscious. This will make it difficult for established high-volume producers to achieve their ambitious growth goals in the backdrop of the emergence of stronger emerging OEMS.