According to the “Global Auto Report” by the research arm of Scotiabank global new car sales will gain momentum in 2010 after an initial recovery in 2009 which could, they say, lead to record sales in 2011.
The emerging markets of China, India and Brazil will take the lead, but, according to the report, “the key US market” will not be far behind with an expected 10 per cent growth in car sales.
“Global car sales will continue to be buoyed by the ongoing massive and synchronised monetary and fiscal stimulus,” said Carlos Gomes, senior economist of Scotia Economics.
The stimulus “has generated a global economic recovery, including improving auto lending across the globe”, he added.
The report went on to say that better access to credit and the return to 3 per cent growth in the global economy will allow car sales in 2010 to recover half the ground lost over the past 2 years, this, it is hoped will prepare the ground for record volumes in 2011.
In the US, car sales had ceased declining by mid-year and have resumed normal annual growth rates since August as the economy experienced a “nascent” recovery, the report said.
In 2009, China surpassed the US as the world’s biggest car market, with sales surging by more than 40 per cent to 7.3 million units in 2009, with an additional 20 per cent growth expected in 2010 to almost 9 million vehicles, whilst in India, car sales also reached a record 1.4 million units in 2009.