Global sales of automobiles will continue their five-year run upward according to IHS Inc.
IHS reports 2015 is off to a strong start, and sales are expected to reach 88.6 million vehicles, topping last year by 2.4%
China is predicted to lead the light vehicles sector in volume with growth of 7%, despite the recent economic downturn in the country. Luxury vehicles and SUVs have been very popular in China and should surpass two million units, breaking last year’s sales by 15%.
Sales in North America are expected to continue on an upward swing, and that’s good for sales worldwide. With U.S. consumer confidence high and banks easing up on credit requirements, vehicle sales are expected be around 20 million units, a gain of 2.5%.
Russia will be a big factor on which way sales go in Europe, according to IHS. The country is in a deep recession that’s having a negative effect on neighboring countries and the eurozone. However, IHS still predicts a rise of about 3% in the sale of light vehicles.
Holding back auto sales are the markets in Argentina, Brazil, Chile and Venezuela. Political uncertainty, high taxes for foreign-made cars and tightening credit are all weighing on the industry and won’t be changing moving forward.
IHS warns vehicle makers to be careful in the world market dealing with major fluctuations in exchange rates and the low price of oil. Both factors have been unpredictable and that means companies need to move forward with extra caution.