Automotive / Industry Headlines

2012 Automotive Industry Outlook to Improve

January 6, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

DETROIT-- PwC's automotive analyst group, Autofacts, says it expects 2012 global light vehicle assembly will exceed 79 million units, an increase of 6.8% from 2011's total. Although many market uncertainties will carry over into 2012, Autofacts remains optimistic that the global automotive industry outlook will be positive, assuming that a policy resolution in the European Union materializes in the near-term.

What is contributing to the positive outlook?

  • Monetary tightening and other policy shifts in Brazil, India, and China caused slower growth in 2011. But, with inflationary fears in these markets subsiding (prompting correspondingly looser monetary policy), these markets could be poised for substantial growth once again.
  • Russia is positioned for another year of strong local demand.
  • BRIC growth is likely to reach double digits (12%) in 2012 following only five percent growth in 2011.
  • Potential exists for strong output recovery in Japan and Thailand as the auto sectors in both countries work to satisfy pent-up demand, clear product backlogs, and rebuild inventory in the wake of 2011's natural disasters. Thailand's eco-car program is also likely to provide assembly upside in 2012.
  • North American industry outlook remains positive although volumes are not expected to achieve prior peaks. Autofacts predicts an 860,000 year-over-year increase - in North America production predicated on healthier inventory, export growth, and US light vehicle sales of 13.6 million units in 2012.

    "The U.S. region's automotive sector is poised for continued growth in 2012," says Rick Hanna, global automotive leader, PwC. "Automotive companies have ramped up vehicle inventories and growth markets are easing monetary policy. Although uncertainty persists, we anticipate the global automotive industry will run on all cylinders toward another record year as long as Europe's issues don't spill over to other regions."

  • Did you enjoy this article? Click here to subscribe to Quality Magazine. 

    You must login or register in order to post a comment.

    Multimedia

    Videos

    Podcasts

     In honor of World Quality Month, we spoke to James Rooney, ASQ Past Chairman of the Board of Directors 2013, for his take on quality around the world.
    For more information, read the ASQ Speaking of Quality column.
    More Podcasts

    Quality Magazine

    CoverImage

    2014 September

    Check out the September 2014 edition of Quality Magazine for features!

    Table Of Contents Subscribe

    The Skills Gap

    What is the key to solving the so-called skills gap in the quality industry?
    View Results Poll Archive

    Clear Seas Research

    qcast_ClearSeas_logo.gifWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

    eNewsletters

    STAY CONNECTED

    facebook_40.png twitter_40px.png  youtube_40px.pnglinkedin_40px.png