Continental AG Sees Promise in Low-Cost Cars, Expands R&D in Emerging Markets

Continental AG is confident the booming low-cost cars segment is a profitable one and will expand R&D capacities in emerging markets, chief technical officer Karl-Thomas Neumann said. The German automotive parts maker supplies India's low-cost Tata Nano car with fuel injectors and sensors to measure fluid levels. The car developed by Tata Group is estimated to cost some $2,500, plus taxes.

From AFX News Limited

FRANKFURT — Continental AG is confident the booming low-cost cars segment is a profitable one and will expand R&D capacities in emerging markets, chief technical officer Karl-Thomas Neumann said.

The German automotive parts maker supplies India’s low-cost Tata Nano car with fuel injectors and sensors to measure fluid levels. The car developed by Tata Group is estimated to cost some $2,500, plus taxes.

Growth in the global automotive industry is increasingly driven by sales in emerging markets such as Russia, India and China.

Neumann said in an interview that Continental will significantly expand its R&D capacities in Asia and South-America, as low-cost cars need to be designed in their respective markets. He said he believes the segment will be profitable despite strong cost pressures in production.

Continental expects some 14 million cars to be sold below $15,000 in 2017.