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Is the global automotive industry on a lasting growth path yet?

Time: 2010-05-12

New Delhi: It's May car air compressorssales tax figures from different continents. Not long ago it was a year ago to be exact 
These figures are said only in red and press releases of bankruptcies,heavy duty air compressors layoffs and plant closures. have Fortunately, the industry seems to be the trend in gross and understand the numbers, this time in black and optimistic.

One of the most anticipated in the industry today in China and India. India, in April, its best selling cars in the ten years reserved to 39.5%. The growth will continue and the availability of finance play an important role because it is so far. Most of the growth came from the small car segment represented more then 70% of total sales. Domestic sales of Maruti Suzuki has increased from 22.12% to 68,668 units, SIAM. Hyundai Motors and Tata Motors also has a healthy growth of 28.15% and 76.41 to 28% 501 and 19 762 units with experience. Despite the positive factors in the industry still has some challenges in the form of higher raw material costs that could eat into the margins of manufacturers and high interest rates, to prove a shock to overcome the perception of consumers in the long term.

China, the world's largest market for cars was 33.2% of car sales in April 2010 with the development shows a decrease of 71.78% growth in the first quarter of this year. However, this should not lead to speculation, as the negative decline can be attributed to the stabilization of the Chinese market for a period of strong growth. Sales in China 15,50,000 units last month by the China Association of Automobile Manufacturers (CAAM). The association projected sales for this year to 15 million euros (1,50,00,000), 10% growth over last year. Unlike motor vehicles in India is equal to or less than 1.6 liters fell 2% of the average last year in March. The segment now accounts for 67% of total car sales. SAIC Motor, the Chinese car manufacturer first sold 3,03,800 units in April.

Japan also managed to ride the wave of this increase in the recovery of the combined figures of cars, trucks and buses without a mini-vehicles by 34% to 2,22,095 units. Toyota has billed as the largest automaker a growth of 50% to 1,13,644 units without the Lexus brand. Nissan and Honda sales increased by 31 and 13%. Japanese Cars recovery of history in recent months, mainly because of government rebates and tax cuts and growth should continue through written this year.

For Europe, returned in April to a combination of good, bad and ugly. Spain increased by 39.3% to 93 637 by car manufacturers ANFAC Spanish group, against 67 214 in April 2009. Germany by contrast, saw its fifth consecutive monthly sales drop 32% to 2,59,500 units. The decrease is mainly due to consumer sentiment and not so good at the end of a stimulus package the government team. Italy also experienced a decrease of 15.6%. Great Britain, however, raised by 11.5%, although the government stimulus program ended last month. France also has a 1.9% growth, but showed significantly less than 13% last month.
North America in general could maintain the growth momentum in recent months. Detroit Three (GM, Ford, Chrysler) show increases in sales in the U.S. by 20% to 9,82,131 units by Autodata Corporation. At the same time last year, the U.S. auto industry had its worst crisis and GM and Chrysler were on their way to the opening of bankruptcy proceedings. GM posted the smallest increase of 7.2% of all car manufacturers due to the removal of the four brands in its restructuring phase. Industry experts expect 2010 revenue growth of around one million units, the growth of U.S. GDP contributed to it. GM took the position as number one in April through the sale of 1,83,614 vehicles easier. Ford and Toyota came in second place and 1,67,283 to 1,57,439 units in March and amounted to a growth of 24.9 and 24.4%. Toyota managed to increase sales despite the massive recall due to the expansion of the incentive program, a zero percent financing and maintenance free.

The numbers show that the road to recovery, it is clear that before, but not everything can be as simple as described. While the United States and Europe have managed to recover and grow in the sale of automobiles, which are still far from its highest level shows sales of only a few years. It is rather a process of restoration, the absolute growth. The fact that this recovery has a lot to the government abolished the stimulation programs fueled by the possibility of a pent-up demand for labor as a shot in the arm for recovery support. Car manufacturers in these regions are very focused on alternative propulsion technologies. Electric cars, but qualified for the future and not far from mass acceptance because of the lack of adequate infrastructure. Automakers now have to think, innovate and create a demand for new technologies in the company to grow over time. Until then, the cars more fuel efficient and compact is the key to sustainable growth in these regions.

While Asia is very strong in numbers to the West, has its own challenges. Rising raw material costs and inflation are some big problems. With China and India are at a rapid pace in these countries must make substantial investments to reduce emissions and bring them into line with global standards, even during a longer period could be billions of dollars to develop. This in turn would pass the burden on building owners to technologies more environmentally friendly because the car is, unfortunately, the first product under the ax when it comes to CO2 emissions come from. While demand in the future is not a problem in a country like India, the preference of products presents a challenge for automakers. Consumers prefer small cars here, with a maximum value of money. The manufacturers of many of them fought in this room, the competition is tough and this results in lower margins for automakers. excess charges on imported cars that cost more than twice its actual value does not help to translate the cause.

Wait, electric or hybrid cars account for collection in the Indian market in the medium term, not a practical evaluation. Automakers could get the best deal for compact cars with smaller engines to maximize deductions from excise duties and the use of technology to turbo-charge of electricity and fuel emissions, while reducing emissions.

While the global automotive industry can bring the crisis to the back of the head now, must work actively to establish in the action not only innovative technologies in future production, but also technical and commercial. While growth can not be ignored announced that it will take time for industry to recover completely and remains in a precarious condition. active investment in the future unlike the past, is the only way to ensure that does not provide all the economic turmoil in the future of the industry in crisis.

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