Meanwhile as developing countries see increased industrialisation through a

Meanwhile as developing countries see increased

This preview shows page 86 - 88 out of 136 pages.

Meanwhile, as developing countries see increased industrialisation through a burgeoning automobile industry, the sector remains an industrial keystone of several major developed economies. Against this backdrop, we observe two evolu- tionary trends within the global industry. First, firms from developing countries (primarily China and India), having established themselves in their domestic market, have begun strategising for the global markets. Secondly, we see an increasing proliferation of efforts at decarbonisation within the car industry, primarily through the adoption of electric propulsion systems rather than exist-ing ICE systems. Thus, overall, within the auto-mobile sector the tension between the incumbents and newcomers is being played out at three levels: countries, firms, and technologies. Of course, the approaches to decarbonisation are different across firms. While Toyota has taken a hybrid electric route, Nissan and others have chosen a pure elec- trical vehicle route. Others are hedging their bets with investments in a range of hybrid and pure EV solutions (e.g., GM, Ford, Daimler, etc.). Concur- rently, the incumbent ICE technologies are also improving their efficiency, thereby posing a serious challenge to the emerging technology paradigm. At the same time, emerging firms in developing countries are hoping to use this transition within the global car industry to catch up with their estab- lished peers in the developed countries. National champions in China and (to some extent) India are investing in the overall innovation chain for elec-tric mobility, hoping to leverage these technologies to catapult them into the global markets. At the country level, the transformation toward low-car-bon mobility is supported through various policies with the aim of gaining (in developing countries) or preserving (in developed countries) industrial competitiveness in the automobile sector. Other motivations are energy security and climate change mitigation. Interestingly, these efforts, while posi- tioned as investments toward climate change miti- gation, are being created by nations, both devel- oping and developed, to support the domestic car industry in transitioning toward the new technol-ogy landscape. Source: Chaudhary (2012). 78 GLOBELICS THEMATIC REVIEW
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Low-carbon technologies are strategically impor- tant as the cornerstone of future industrialization in developing countries. However, these technolo-gies are also an instrument for furthering the com- petitive edge in developed countries. This leads to a strong interest in supporting domestic low-carbon technology-related industries in both developed and developing countries. This conflict between the need for global climate change mitigation and the respective national imperatives of competitiveness and job creation is threatening the global trade in low-carbon technol- ogies and associated products. A framework to ad- dress such tensions is currently lacking. Without a directed effort to move toward responsible liberali- sation of such trade, efforts toward climate change mitigation could easily devolve into new trade wars.
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