There will soon be a billion cars, trucks and crossovers on the world’s roads according to latest report, but that number could more than double as demand continues to escalate in emerging markets, especially the so-called BRIC countries.
A total of 83 million new vehicles is estimated to have been sold by the end of last year, representing a 3% gain over 2012 according to a senior economist with IHS Automotive. But by 2018, the annual production rate is expected to reach a record 100 million, he predicts, and that is likely far from the peak.
Pointing to the BRIC countries consisting of Brazil, Russia, India and China – as well as other fast-growing economies such as Indonesia. The world is witnessing rising wealth that is creating new customers for the auto industry
China is already the world’s largest automotive market and despite a recent slowdown, it is expected to continue growing at a pace well in excess of the United States, the industry’s long-time leader. Much of that growth has occurred in a narrow band along the Pacific Rim where China’s economy has shown the fastest gains. But that growth in wealth is now starting to spread to other parts of the country.
More interestingly, emerging markets are clearly driving the auto industry’s growth. From the year 2000 to 2020, BRIC nations alone are expected to see an 805% increase in automotive sales, according to the IHS study, with other emerging markets growing by 157%. By comparison, the so-called mature markets will actually experience a 6% decline in demand.
