Thursday June 11, 08:24 PM
World auto sector set for 2010 rebound: study
PARIS (AFP) - The world auto sector, after suffering a sharp decline this year, is set for a 5.0 percent sales rebound in 2010, a study forecast Thursday.
The IHS Global Insight research group said sales in 2009 were likely to plunge 14 percent, after a 5.0 percent decline in 2007-2008, before rising by 5.0 percent in 2010 and by double digits in 2011.
IHS Global Insight chief automobile economist Nigel Griffiths said the global economy and the auto market were no longer in free fall, with a pickup in sales and production expected to become evident around the middle of next year.
The turnaround, according to the study, would be aided by government support measures for the industry, such as tax incentives and bonuses for scrapping old vehicles and buying new ones.
Such measures should result in sales worldwide of 2.5 million cars this year, representing one-twentieth of total sales.
Auto sales in western Europe are projected to come to 12.2 million units this year, a drop of 10 percent, and 11.4 million in 2010, down 6.5 percent. A sustained turnaround in western Europe is not expected before the second half of 2010.
In North America, according to the study, the downward trend in the auto market is nearing an end and should be replaced by a modest recovery in the second half of this year.
IHS Global Insight foresees sales in North America of 11.2-11.3 million vehicles in 2010, after 9.7 million this year and 13 million in 2008.
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