CORRECT: Brazil, Russia, India, China To Be 30% Of Global Auto Sales By 2014 -Study

Brazil, Russia, India and China will account for more than one-third of global automotive sales within the next four years, and what car sells best will be as varied as the countries themselves.

Automotive sales in the "BRIC countries" are expected to grow at a rate of 3% to 15% a year, outstripping mature markets which will average a 2% rate, according to a study release Thursday by The Boston Consulting Group.

Russia is expected to outpace the group. Although auto sales dropped by 50% in 2009, the country will stabilize this year and sales there will grow by 15% annually over the next four years.

The study underscores the intensifying role Brazil, Russia, India and China will play in the automotive industry and the need for auto makers and suppliers alike to broaden their presence in these countries.

"What you have in these countries is either an emerging of the middle class or auto makers that have lowered the cost of the vehicle so more people can buy," said Boston Group partner Nikolaus Lang, during a press briefing Thursday.

Auto makers must open more dealerships, increase research and development and establish more manufacturing in those countries, according to the study.

General Motors Co. and Volkswagen AG (VLKAY, VOW.XE) along with suppliers, The Bosch Group and Delphi Corp. (DPH), are the only companies that are currently best positioned in the BRIC countries, according to the study.

China's market will dominate the group, accounting for 61% of the BRIC sales volume in 2014. However, the China market will cool to annual growth rates of 5% going forward rather than the 20% to 40% rates of the past.

Brazil will likely be the most stable of the countries and hold the second largest automotive sales market within the group.

India will report the fastest growth rate but its market size will remain in third. Russia's market will maintain its fourth place ranking through 2013 and then surpass India in 2014.

Consumer demand will also be as varied as the countries themselves.

"There will be cars that sell around the world but to be successful, auto makers will need vehicles that can be adapted to the different markets," Boston Group senior partner Xavier Mosquet said. "There will be no BRIC car."

Brazil is ripe for sales of hatchbacks and sporty-pickups such as the Chevy Celta.

India needs ultra-low cost mini cars equipped to handle flooded roads and stronger air conditioning systems such as the Tata Nano.

Russia wants sedans and sport-utility vehicles such as the Toyota Camry.

"They want Western vehicles not Russian adapted cars," Lang said.

Vehicles with extended wheelbases, large trucks and cars equipped with entertainment and luxury items would appeal to Chinese consumers.

-By Jeff Bennett; Dow Jones Newswires; jeff.bennett@dowjones.com; 248-204-5542

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