Global Sales of Passenger Cars are Projected to Reach 79.7 Million Units by 2020
Steady Demand from Developing Markets to Drive Growth in the Passenger Cars Market, According to a New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Passenger Cars. Global sales of Passenger Cars are projected to reach 79.7 million units by 2020, driven by steady improvement in macroeconomic conditions and the subsequent rise in consumer demand, particularly in developing markets.
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,
Ĺ koda 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.
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