Global Market for Passenger Cars and Commercial Vehicles to Reach 104.3 Million Units by 2015, According to New Report by Global Industry Analysts, Inc.

Share Article

GIA announces the release of a comprehensive global outlook on the Automotive Industry. After a considerable decline in volume and value sales during 2008 & 2009 due to the financial crisis led worldwide economic recession, the global automotive industry is back on growth track and is projected to register 104.31 million units in sales of passenger cars and commercial vehicles by 2015. Growth in the market will be primarily driven by resurgence in growth fundamentals such as increase in employment opportunities, improvement in income levels, recovery in credit market, and subsequent rise in demand for passenger cars and commercial vehicles.

Automotive Industry: A Global Outlook

Follow us on LinkedIn – The automobile industry was among the worst hit industries by the recession. Demand for cars witnessed hurting declines during 2008 & 2009. Hit by declining sales and mounting financial burden, major companies in the industry announced large-scale production cutbacks in a number of facilities. Smaller and less efficient facilities were culled, while larger players consolidated changing the landscape of the automotive industry. Many of the leading automotive dealers too filed for bankruptcy or resorted to distress sale of their brands to recover financial losses. The soft business climate in the industry at large was largely due to restricted access to credit, decline in purchasing power, reduction in household wealth, falling business confidence index, decline in per capita automobile travel and volatile fuel prices. All of these factors resulted in postponements of car purchases, which translated into declines in new vehicle sales/registrations. The commercial vehicles sector was especially impacted with fleet owners focusing on maintaining existing vehicle fleets rather than purchase new vehicles. Weak logistics, distribution, and service sectors like plumbing, home improvement, and emergency services, among others, took its toll on the market.

In the post recession period, growth in the global automotive industry will be especially driven by robust demand for passenger cars in emerging nations such as China and India. Placed ahead of the matured markets of the US, Japan and Western Europe, they translate into relatively high profit zones. Rising income levels aided by growth in employment opportunities are opening up new market avenues for passenger car manufacturers in developing nations characterized by a predominant middle-class consumer population. The latent demand in these countries presents a huge potential for the industry to tap in the upcoming years. Automotive sector in the US, Western Europe and Japan is relatively mature. Growth in these markets will largely rely on product innovations and new launches. The demand for automobiles, particularly commercial vehicles, is highly affected by fluctuations in international oil prices. This phenomenon is particularly prominent in developing nations. Even in the developed economies such as the US and Europe, the effect of fuel price hikes have strongly been felt, particularly in the medium- and high-load truck segments.

Globally, electronic content in passenger cars is increasing at a rapid rate, although the segmental growth dynamics differ for regional markets. Mature markets such as the US, Japan, and the West European nations are moving towards the next phase of evolution characterized by a rising demand for communications, navigation, and entertainment systems. Niche market segments with best growth prospects include power electronics, advanced navigation and collision avoidance systems, and entertainment electronics. In the developing world however, emphasis is on inclusion of basic electronics packages aimed at improving passenger car safety and efficiency.

The engines and transmissions in current generation passenger car models are prepared to endure worst of conditions. In present generation cars, the catastrophic engine or transmission failures are almost minimal. Nowadays, people demand comforts such as convenient location of radio buttons and low wind noise. A majority of automakers focus on consumer expectations while designing a new model. Consequently, today’s automobiles have evolved as far better machines than cars of the past. The technological evolution has been largely possible as both quality and endurance are engineered into a product.

The research report titled “Automotive Industry: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends in the automotive market, and demand drivers, in addition to providing statistical insights. Regional markets briefly abstracted and covered include North America (United States & Canada), Europe (Germany, the UK, Russia, Turkey, and Poland), Asia-Pacific (Japan, Australia, China, India, Indonesia, South Korea, and Thailand) Latin America (Argentina, Brazil, and Mexico) and Rest of World. The report offers a compilation of recent mergers, acquisitions, and strategic corporate developments. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

For more details about this comprehensive industry report, please visit –
http://www.strategyr.com/Automotive_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

Follow us on LinkedIn

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Public Relations
Visit website