Steady Demand from Developing Markets to Drive Growth in the Passenger Cars Market, According to a New Report by Global Industry Analysts, Inc.
San Jose, California (PRWEB) April 30, 2015 -- Follow us on LinkedIn – The global automotive industry has come a long way, since the mass production of Model-Ts. Technological advancements over the decades have transformed the automotive industry. Changing consumer preferences, growing focus on safety and environmental benefits, have played instrumental roles in the evolution of automobiles. The industry has seen the introduction of several automobile models over the years, right from fuel guzzling and power packed models to lightweight, fuel efficient and low emission vehicles. Cars with advanced safety and comfort features are also growing in popularity in recent years. Demand for passenger cars is primarily influenced by economic conditions dictated by GDP growth; changes in government policies; fluctuation in exchange rates, and inflation levels. Additionally, volatile fuel prices and the transportation infrastructure also tend to influence demand for passenger cars.
After a long drawn period of slowdown, global demand for passenger cars is expected to gain traction in the short to medium term period, driven by the improving economic outlook in the United States, and in developing markets. While India and China will continue to be primary markets for passenger cars in short to medium term period, emerging markets grouped under multiple acronyms such as CIVETS, MIST, Next 11, and MINT will sustain demand growth in the long term. Characterized by rapidly growing domestic consumption, rising middle class, cheap labor, large base of young, affluent and employed population unlike the aging, retiring baby boomers in developed countries, these countries will help supplement future growth in the world economy.
New vehicles models with high fuel efficiency and low emissions and those high on safety and comfort features, will continue to gain traction in growth. Auto manufacturers are incorporating advanced systems such as intelligent driver assistance, in-vehicle communication & infotainment in passenger cars. In addition, digital entertainment is also attracting immense interest. With a major portion of time spent on traveling, automobiles are now gradually evolving into a natural extension of people’s digital lifestyle. With the automotive industry focusing on safety and reducing driver distraction, features such as, hands-free Bluetooth communication, speech commands, and sophisticated touch input dashboard systems for easy access to maps, music/audio systems and navigation, are emerging as critical variables influencing consumer purchase decision.
Electric and hybrid cars are expected to witness strong demand supported by numerous government programs designed to incentivize the development of infrastructure to support these vehicles and encourage consumer adoption. Consumer tax credits, and research and development incentives, for instance are helping boost demand for and commercial viability of electric cars. The focus on reducing petroleum dependence, propagation of environmental stewardship, and development of sustainable transportation infrastructure, will help drive future gains in the market.
As stated by the new market research report on Passenger Cars, Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market with a CAGR of 6% over the analysis period. Most of the passenger car demand in the region will be driven by China. Despite the stabilizing of the Chinese economy and its automotive industry, the country will continue to remain a major market for passenger cars in the coming years. The gradual sophistication of the domestic auto industry and growing consumer preference for luxury cars will be a key factor driving auto sales in the country in the coming years.
Major players covered in the report include Audi AG, Bayerische Motoren Werke AG, Daimler AG, FCA Italy S.p.A., FCA US LLC, Ferrari S.p.A, Fiat Chrysler Automobiles N.V., Ford Motor Company, General Motors Company, Honda Motor Co., Ltd., Hyundai Motor Company, Mazda Motor Corporation, Mitsubishi Motors Corporation, Nissan Motor Co., Ltd., Porsche Automobil Holding SE, PSA Peugeot Citroen, Renault Group, Škoda Auto, Suzuki Motor Corporation, Toyota Motor Corp., Volkswagen AG, and Volvo Car Corporation among others.
The research report titled “Passenger Cars: Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of industry segments, trends, growth drivers, restraints, market share, size and demand projections and forecasts. The report provides market estimates and projections in Thousand Units (for production and sales) for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, 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. The report also offers coverage on mergers, acquisitions, product launches and other strategic industry activities of major global and regional players.
For more details about this comprehensive market research report, please click here
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 1500+ 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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