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New markets, new product segments, and new players are rewriting the rules of the passenger car industry and threatening to upend the traditional order. However, there is considerable uncertainty about the continuing pace of these disruptive developments and their eventual outcomes. Will sluggish investment in road infrastructure stymie the growth of demand in emerging markets? What effect will spiraling oil prices have on demand for small, fuel-efficient cars and on efforts to develop alternative technologies? Will new players in emerging markets be able to defend their domestic positions against competitors that have global presence and economies of scale?
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