Sales of Passenger Cars Worldwide to Reach 86.5 Million Units by 2017, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Passenger Cars market. World passenger cars market is projected to reach 86.5 million units by the year 2017. Growth will be primarily driven by strong GDP growth and rising discretionary incomes in developing countries, growing demand for luxury cars given the aspirational value attached to premium brands and rollout of new models of feature rich, low emission ‘smart cars’.

Passenger Cars: A Global Strategic Business Report

Follow us on LinkedIn – Demand for passenger cars closely correlates with the spending power of consumers, which in turn is influenced by trends in GDP growth and employment rates. In other words, there exists a strong correlation between national income in a given economy and automobile ownership rates. Robust growth in vehicle ownership is therefore forecasted in the medium to long term, given that in economies where per capita GDP (GDP/person) averages to over US$4,500, auto ownership tend to double at a rate faster than the rate of growth in per capita income. With GDP per capita in several Asian countries, including China and India, breaching the US$4,000 mark, its opportunities galore in the passenger cars industry. The industry is also influenced by politically induced financial policies and regulations. For instance, government polices to cap automobile congestion by implementing anti-auto policies, deregulation of fuel prices and the ensuing rise in fuel price, changes in supportive government regulations on fuel usage, automobile financing policies, among others, also tend to influence demand patterns in the industry. Demand in developed economies in North America and Western Europe, is forecast to continue slowing down as a result of saturating ownership rates, but will be compensated by opportunities offered by mass motorization in developing countries.

The automotive industry will be faced with two primary challenges in the upcoming years - transitioning from their dependence of fossil fuels to alternate fuels and reducing carbon dioxide emissions. Against this backdrop, sales of eco-friendly automobiles, which qualify as next-generation alternative-energy powered vehicles critical to meet carbon reduction goals, will remain important for the automotive industry’s long term growth. Electric and hybrid passenger cars will witness strong growth encouraged by promotional support extended by governments, such as, sweeteners for purchase i.e. tax rebates subsidies, incentives for infrastructure development i.e. financial support for R&D, establishment of refueling stations, and tax credits on capital investments. Of noteworthy interest is the government support being established in most countries for encouraging purchases of new energy-efficient vehicles. Hybrid cars offer bright future prospects, due to their considerable benefits, including environment-friendliness, higher mileage, and fuel efficiency in comparison with traditional cars. Car producers aiming to tap the hybrid car segment are fast-tracking their development plans in tune with the growing market size. At present, the U.S., Japan and Europe lead in the sales of hybrid cars, in that order. The biggest hybrid car manufacturers worldwide are Toyota and Honda. Hybrid car manufacturing at present is limited to a few automobile companies across the world. However, several major car manufacturers are in the process of entering the hybrid car market.

While the automotive industry the world over is recovering from the 2007-2009 recession, the industry in Europe is running into fresh set of challenges. The industry in the region currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering market. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. The heat raised by the Euro debt crisis in the auto industry in the EU is reflected by the growing concerns voiced by auto majors like Ford, General Motors, Fiat, over the volatile and fluctuating profits being recorded in the region. Macro themes affecting Europe include the prolonging of the sovereign debt crisis as a result of the half-measures implemented till date in attempts to stave off the crisis, a dysfunctional financial system that is fuelling a slow-motion economic collapse and fears over reduced consumer spending and slower economic growth as a result of austerity measures. At the extreme pessimistic end of the spectrum, bearish market sentiments indicate that multiple defaults by debt ridden economies could trigger a collapse of the Euro as a common currency. The return to local currency, although currently not seen as likely, can spell doom pushing the automobile industry into a complete meltdown like the one witnessed during the 2007-2009 recession.

Currently however, despite all the economic risks carried by the debt crisis and the numerous potential outcomes of the crisis, immediate term outlook remains positive, mirroring the guarded optimism prevailing over the financial bailout strategies designed to restore market confidence. While no easy and immediate solutions exist for Europe’s macroeconomic imbalances, current economic data leaves room for hope. Against this backdrop, consumer spending which continues to remain a key pillar of growth in the automotive & automotive related industries, which although currently jittery and sensitive to vacillating market sentiments, is nevertheless expected to hold up in the year 2012.

As stated by the new market research report on Passenger Cars, Asia-Pacific represents the largest market worldwide. The region is also forecast to emerge into the fastest growing, trailing a projected CAGR of 13.5%, over the analysis period 2009 through 2017.

Major players in the marketplace include BMW AG, Chrysler Group LLC, Daimler AG, Fiat, Ferrari S.p.A, Ford Motor Company, General Motors Corp, Honda Motor Co Ltd, Hyundai Motor Company, Mitsubishi Motors Corp, Mazda Motor Corporation, Nissan Motor Co Ltd, Porsche Automobil Holding SE, PSA Peugeot Citroen, Renault Group, Suzuki Motor Corporation, Toyota Motor Corp, Volkswagen AG, Audi AG, Škoda Auto, Volvo Car Corporation, among others.

The research report titled “Passenger Cars: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The single-segment report provides sales and production figures (In Thousand Units) for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, Spain, The UK, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, Indonesia, Malaysia, South Korea, Taiwan, Thailand, and Rest of Asia-Pacific), Latin America (Argentina, Brazil, Mexico, and Rest of Latin America), and Rest of World.

For more details about this comprehensive market research report, please visit –

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.

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Global Industry Analysts, Inc.
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