Global car sales rise above pre-recession levels

The global automotive market has continued to soar past pre-recession levels as expanding Asian markets drive demand, analysts said at Standard & Poor’s (S&P) Auto Industry Hot Topics Conference in New York.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Sales of new vehicles in the United States will still fall short of their pre-recession levels in 2012, however.

Global light vehicle sales are expected to grow to 80.8 million units in 2012, a 5% increase over last year’s volumes and a 15% increase over the 70 million cars sold in the pre-crisis year of 2007, said Jeff Schuster, senior vice president of global forecasting at LMC Automotive.

Leading the recovery in global automotive demand is Asia.

Chinese automotive sales in particular could possibly surpass 30 million units per year by 2030, more than doubling current sales estimates, on the back of government incentives and rising demand, despite some short-term uncertainty ahead of a leadership change this year, said Schuster.

The US automotive market has not returned to the pre-recession levels of 16.1 million units sold in 2007, but it is nonetheless outperforming market expectations, with sales for 2012 projected at 14.3 million, up 12% from last year’s totals.

Short-term factors driving sales in the United States include favorable interest rates and consumers replacing their aging vehicles, while a growing population will contribute to the market’s long-term stability, Schuster said.

Auto sales have comfortably outpaced housing starts since the beginning of the recession, partially due to a “catch-up” as consumers’ vehicles age, said S&P deputy chief economist and senior director Beth Anne Bovino. “People are going to need those cars to get to those job interviews,” she said.

What to read next
Fastmarkets proposes to extend the shipment window of its alumina index inferred, fob Brazil, to allow for greater inclusion of reported liquidity, and to increase the frequency of publication to weekly.
Following a month-long consultation period, Fastmarkets has amended the methodology for the bi-weekly assessment of the aluminium P1020A main Japanese ports (MJP) spot premium, to include domestic tenders and deals from the Japanese market.
Fastmarkets proposes to discontinue its ferrous scrap consumer buying price for cast iron borings in Pittsburgh due to a lack of liquidity.
Fastmarkets is proposing a realignment of its consumer buying price for ferrous scrap No1 busheling in Cincinnati and Pittsburgh, effective from the May 2023 monthly settlement.
A drive by electric vehicle (EV) manufacturers to improve the affordability of their cars may upend an expectation by some market observers that future EV dominance of automotive production will sharply reduce demand for special bar quality (SBQ) steel
The publication of Fastmarkets’ US rebar prices took place earlier than scheduled on Wednesday March 22 due to a reviewer error.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.