Global Vehicle Production to Increase by 21 Million Units by 2021

Business » INDUSTRY | May 8, 2014, Thursday // 15:26| Views: 911 | Comments: 0
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Bulgaria: Global Vehicle Production to Increase by 21 Million Units by 2021 File photo.

Global automobile production will increase by 21 million units by 2021, according to a forecast by IHS Automotive.

Car production has grown by 25 million units since 2009 as the industry continues to recover from the impact of the global economic recession, the analysis of IHS states.

China will dominate, but there is a considerable upside attached to the North American industry as it attracts foreign investment, and in the European industry as its domestic markets climb back. Japanese and South Korean production will decline as local OEMs focus their efforts overseas.

Declining vehicle demand in Russia and Turkey will limit European production growth to 1% in 2014, according to IHS Automotive. However, from 2015 to 2017 European output is expected to increase by 4% per year, led by the recovery of domestic demand and sustainable increase in exports, primarily to the US and China.

While it currently consumes 70% of European production, Western European demand will contribute only 50% of production growth expected by 2021. Of this share, more than a half will come from Spain and Italy as they recover from enormous losses experienced during the years of recession.

"European car makers will meet divergent demand environments, depending on which part of Europe they are more exposed to," said Denis Schemoul, manager Europe vehicle production forecasting, IHS Automotive.

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