DETROIT — PwC’s automotive analyst group, Autofacts, announced today that 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.
Many factors have contributed 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), they could be poised for substantial growth once again.
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.
Additionally, Russia is positioned for another year of strong local demand and BRIC growth is likely to reach double digits (12%) in 2012 following only five percent growth in 2011.
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 U.S. light vehicle sales of 13.6 million units in 2012.
“The U.S. region’s automotive sector is poised for continued growth in 2012,” said 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.”