Press release
Source: Banque Scotia
- China leads the way, but an upturn has begun in most regions
TORONTO, - A cyclical recovery is underway in the global auto industry, according to the latest Global Auto Report released today by Scotia Economics. Auto sales in June posted their best performance since last July, after bottoming earlier this year. Purchases have started to improve in most regions, led by China in the developing markets and Germany in mature markets. Vehicle production has also started to rebound, enabling the auto sector to help drive the global economy towards recovery.
"Global car sales climbed to an estimated 48.0 million units in the second quarter, up from an eight-year low of 43.0 million in the opening months of 2009," said Carlos Gomes, Senior Economist and Auto Industry Specialist, Scotia Economics. "Global economic conditions have begun to stabilize, with consumers becoming more confident and taking advantage of low borrowing costs and competitive pricing. Over the past three economic cycles, car sales bottomed at least one quarter prior to an improvement in the global economy."
According to the report, China is spearheading the recovery in both the auto market and the global economy. Car sales in China accelerated to a 48 per cent year-over-year (y/y) surge in June, lifting purchases above an annualized 7.0 million units for the first time on record, and well above the 5.9 million-unit peak reached in March 2008 prior to the sharp global economic downturn.
Government stimulus and tax incentives are spurring the revival in China. Economic activity in China advanced by 7.9 per cent y/y in the second quarter, up sharply from a low of 6.1 per cent in the opening months of 2009.
Automakers boosted vehicle assemblies by 38 per cent y/y in June after a stronger-than-expected surge in sales in response to cuts in retail taxes and increased vehicle subsidies in rural areas.
"Auto sales in China have been increasing rapidly since 2001, and this pace is expected to continue well into the next decade," commented Mr. Gomes.
General Motors, China's top-selling brand, padded its lead this year, with first-half sales soaring 38% to 814,000 units - a level fast-approaching the 948,000 vehicles it sold in the United States.
Source: Banque Scotia
- China leads the way, but an upturn has begun in most regions
TORONTO, - A cyclical recovery is underway in the global auto industry, according to the latest Global Auto Report released today by Scotia Economics. Auto sales in June posted their best performance since last July, after bottoming earlier this year. Purchases have started to improve in most regions, led by China in the developing markets and Germany in mature markets. Vehicle production has also started to rebound, enabling the auto sector to help drive the global economy towards recovery.
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"Global car sales climbed to an estimated 48.0 million units in the second quarter, up from an eight-year low of 43.0 million in the opening months of 2009," said Carlos Gomes, Senior Economist and Auto Industry Specialist, Scotia Economics. "Global economic conditions have begun to stabilize, with consumers becoming more confident and taking advantage of low borrowing costs and competitive pricing. Over the past three economic cycles, car sales bottomed at least one quarter prior to an improvement in the global economy."
According to the report, China is spearheading the recovery in both the auto market and the global economy. Car sales in China accelerated to a 48 per cent year-over-year (y/y) surge in June, lifting purchases above an annualized 7.0 million units for the first time on record, and well above the 5.9 million-unit peak reached in March 2008 prior to the sharp global economic downturn.
Government stimulus and tax incentives are spurring the revival in China. Economic activity in China advanced by 7.9 per cent y/y in the second quarter, up sharply from a low of 6.1 per cent in the opening months of 2009.
Automakers boosted vehicle assemblies by 38 per cent y/y in June after a stronger-than-expected surge in sales in response to cuts in retail taxes and increased vehicle subsidies in rural areas.
"Auto sales in China have been increasing rapidly since 2001, and this pace is expected to continue well into the next decade," commented Mr. Gomes.
General Motors, China's top-selling brand, padded its lead this year, with first-half sales soaring 38% to 814,000 units - a level fast-approaching the 948,000 vehicles it sold in the United States.
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