Global Car Sales Expected to Increase 4%

March 5, 2012
Western Europe remains the only weak spot in the global trend.

The global car market should grow four percent this year although Europe will lag behind because of the debt crisis, the German automaker federation said March 5.

Despite "headwinds" in the world economy, "the global automotive market remains on course for growth," VDA president Matthias Wissmann said at a news conference on the eve of the Geneva International Motor Show opening.

"Overall, we expect 2012 to bring four percent expansion on the world-wide passenger car market," he added.

"We cannot simply maintain the high rates of growth from 2011 in the same form," he was quoted as saying in a VDA statement.

"We have reduced our speed somewhat, but we are keeping it relatively high."

VDA expects the US market to remain dynamic after two years of double-digit growth, racking up an eight percent gain to 13.7 million light vehicles in 2012.

It said China will also post strong growth of eight percent to 13.1 million vehicles.

In Japan, where car sales last year were hit by the earthquake and nuclear disaster, the market should rebound by 17 percent to 4.1 million units.

Western Europe is the dark cloud on the horizon.

"As a result of the public debt crisis in some EU countries, passenger car sales in Western Europe this year will, in all probability, decrease by as much as five percent, to 12.1 million units," said Wissmann.

He said German car manufacturers should be able to weather the regional downturn, noting that seven out of ten passenger cars exported in Germany are bound for non-eurozone markets.

They also hold 80 percent of the global market share in the highly profitable premium segment, he noted.

Copyright 2012, Agence France-Presse


See Also:
"U.S. Auto Sales Accelerate Despite Fuel-Price Jump"
"Chrysler Sales Leap 40% in February, Pacing the Auto Industry"

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!