Global auto sales up 3%, as China’s luxury market stalls

Consumer demand

SHARE THIS STORY

All autos May13.pngAuto sales data is now available for the first 4 months of the year, covering the 5 key markets of China, US, EU, Japan and India. These account for 75% of global sales. As the chart shows:

• Demand patterns in 2013 (red line) have been more volatile than in 2012 (green)
• Total demand is up just 3%, compared to a 6% rise at this time last year
• January and April were both above 2012 levels, whilst February and March were lower

This confirms the view of industry analysts Polk, who expect only 3% global growth this year.

The position in individual regions is also quite variable:

China remains the strongest market, with sales up 18% due to high licence plate values
US sales gorwth is slowing, up 7%, as the Hurricane Sandy effect ends
Europe is down 7%, with consumer spending weak and the Eurozone economy contracting
Japan is also down 7%, as its ageing population no longer needs many new cars
India is down 20%, with its market suffering from slowing GDP growth

Another key factor is slowing growth in the luxury car segment. In China, the new leadership’s anti-corruption campaign has reduced growth to just 4%, compared to an average 36%/year over the past decade. This is particularly hitting German producers, who dominate the sector. They are also next in line in the trade war now beginning between the EU and China, which began with EU duties on solar panels.

Companies wanting to succeed in the New Normal need to carefully review the strategies that brought them success in the past. Winners in the future will have to refocus. In auto markets, for example, the major growth markets will instead be for car-sharing and lower-priced entry level models.

PREVIOUS POST

Unique and timely insight on China from John Richardson

11/06/2013

Credit where credit is due, is the blog’s motto. It would thus like to rec...

Learn more
NEXT POST

US job growth remains slow as Boomers leave the workforce

13/06/2013

Last week’s US jobs report contained some good news, but not very much: ...

Learn more
More posts
Auto markets set for major disruption as Electric Vehicle sales reach tipping point
21/09/2019

Major disruption is starting to occur in the world’s largest manufacturing industry.  Hundred...

Read
Smartphone sales continue their decline, whilst $25 smart feature phones open up new markets
04/08/2019

Global smartphone sales have now been falling for 8 consecutive quarters, since Q3 2017. They are no...

Read
Smartphone market decline begins to impact global stock markets
19/05/2019

The bad news continues for the world’s smartphone manufacturers and their suppliers.  And Pre...

Read
There’s a great future for the European plastics industry in recycled plastic
05/05/2019

Europe’s plastics industry is under major threat from the growing legislative and consumer bac...

Read
$60bn opportunity opens up for plastics industry as need to eliminate single-use packaging grows
17/03/2019

150 businesses representing over 20% of the global plastic packaging market have now agreed to start...

Read
IKEA heads into the circular world with furniture subscription trial
10/02/2019

“Once upon a time, Granny and Grandad used to go to a large shop on the motorway to buy their ...

Read
Fed’s magic money tree hopes to overcome smartphone sales downturn and global recession risk
03/02/2019

Last November, I wrote one of my “most-read posts”, titled Global smartphone recession ...

Read
Global smartphone recession confirms consumer downturn
11/11/2018

Q3 smartphone sales data show the global market in recession, as Strategy Analytics confirmed: “Th...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more