A study by Euler Hermes predicts that worldwide vehicle sales will reach 95.8 million vehicles in 2017 (+2.1% annual growth) and 98.3 million in 2018 (+2.5%) before reaching the 100 million in 2019.
China will be in the lead, being the market that contributes the most to this growth, with India in second place.
These conclusions are contained in the study “The Auto World Championship” by Euler Hermes (EH), a shareholder of COSEC, a national leader in credit insurance.
The boost given by China and India in 2017 and 2018 will offset the decline recorded in the US and UK, this work said.
However, this report highlights some risks to the world trade in vehicles:
- Discontinuation of car tax exemption in China in early 2017
- More Tense Financial Conditions in the US
- Brexit likely to affect purchasing power in the UK
- The economic recovery in Europe and the rest of the world may not be enough to offset the slowdown that the sector is facing
- The tightening of global financial conditions in 2018 could lead to an increase in the cost of borrowing for households and inventories for manufacturers
- Accelerated used market
- Demand for new mobility services and the increased adoption of autonomous driving are making cars in fashion again.
"Explosion" of Electric Cars
Electric vehicle sales will show strong growth and the world stock is expected to exceed 3 million vehicles by the end of 2017, with important contributions from China, France, Germany, UK and USA.
By the end of this year, it is estimated that China and the US represent more than two-thirds of global electric vehicle sales.
Government subsidies, the expansion of the charging station network and the decrease in battery prices (due to technological progress) are pointed out by this study as the main drivers of growth in this market.
You can download more findings from the study “The Auto World Championship” by Euler Hermes (EH) or access the full study via this link.
Consult Fleet Magazine for more articles on the automotive market.