What will be the key success factors in the world automobile industry during the next five years? Which companies will be most profitable?

When looking ahead in to the future with regards to the global automobile industry, it can be difficult to assess the impact that combined external forces could have on the generally fierce competition that currently dominates the industry. Therefore it would seem a sensible suggestion that in order to look towards the next five years, factors which companies within the automobile industry have a margin of control over ought to be reviewed.
Firstly it is apparent that the current supply outstrips that of demand, leaving the industry with a chronic overhang of excess capacity. Thus in order to achieve an adequate profit margin, which has been difficult to achieve before and after the recession (Gartner), the industry would do well to focus on the opportunities of gaining sales in emerging, growing markets instead of continued plant closures in the mature markets (deliotte) as there is likely to be a change in the geographical pattern of demand. The most sales are predicted in the BRIC countries and other emerging markets whilst the mature OECD markets will remain relatively stagnant (OEC REPORT). Automobile companies such as Tata Motor, Geely and SAIC may be well on the way to strengthening their profitable positions for the future through their acquisitions gaining them an international platform to compete from.
Following on from this fuel prices remain high and consumers have a greater concern for the environment; increasing popularity for hybrid and electric cars. The continued development in this area along with government incentives will affect the industry in big ways, as it will create a new market for businesses to cater to these new forms of vehicles (Liu, 2013). It is also likely to accelerate the trend towards