Most people believe that we are operating in one global village that is backed with global marketing phenomenon. And if we are indeed living in one large global village, then the barriers of countries should not be a part of the market dynamics. To most automotive analysts, this statement is a prelude to globalization of the automotive market across the world.

Manufacturers from Japan & Korea have constantly figured high on the list of car buyers in the US and Europe. On a similar basis, Ford and General Motors have enjoyed tremendous confidence across the globe, be it in South Africa, India, China or Japan.

However, recent automotive events may change all this in the long term.

The impact of Toyota’s recalls is actually causing a polarization in the automotive markets, with the Asian and Japanese manufacturers being classified in one group. This includes Toyota, Honda and Nissan. Suddenly, we see a spate of nationalist appeals and a lot of talk about Ford and General Motors.

Ford was expected to beat Toyota in February and it did even better by coming tops over Toyota and General Motors. But, this is a kind of an intermediate result of Toyota’s recalls and GM’s problems. Once Toyota evolves an aggressive sales strategy, it should be right back up. At least that is what most of us think.

There are some folks who want to polarize the automotive markets on the basis of manufacturing regions. Yes, Toyota did recall 8 million vehicles. This in no way means that Japanese manufacturers are not reliable. On top of it, if you look at the safety records of Japanese manufacturers, you will find your answers in detail.

Essentially, the question over here is whether we can allow or afford to have a polarized automotive world? I think, we should not encourage any trend that tries to polarize any market on the basis of geography. Each automotive manufacturer is looking at bring certain specific value to the consumer. Look at Hyundai’s Kia. It has surpassed some of the well known brands in topping consumer satisfaction in the US. If we were to limit the auto market based on geographies, then the consumer is going to lose out on multiple variables and benefits that reach him due to competition between all the automotive players.

If one country was to say that it will buy cars made by manufacturers based in its own country, then this trend has the risk of getting replicated across other countries across the globe, thereby defeating the principle of open market trade.

The decision to buy should be influenced by each person’s own merits.
Buying cars is really an individual choice. If you are a nationalist and want to buy your own country’s car, then there is no problem. However, when attempts are made to try and influence the society to buy certain products only, then the market dynamics lose out. If you compromise the market dynamics, you will definitely lose out on the benefits that an open market can present for you.

So, the next time I hear a call that I should buy a particular brand because I am an American, then I am going to ask the person if he would mind discussing the merits of my next purchase based on qualitative factors of cars?