The traditional strong markets such as Western Europe and the USA have emerged from recession with relatively strong new cars sales and used car values. Future challenges will now centre around diesel unpopularity and Electric Vehicle adoption.
Both the Russian and Brazilian markets appear to have bottomed out after a disastrous three years. Political uncertainty, currency fluctuations, recession, sanctions and low oil prices appear to be having a lessening effect on growth and recovery. Signs for the future are starting to look positive in Brazil as growth forecasts are 4-5%.
India is a success story. Strong growth of 7.5% GDP last year and experts forecast this to be repeated for 2017. OEM investment has grown to exploit the middle-class boom and most forecasters predict more of the same.
Unfortunately in South Africa’s case the outlook does not appear to be positive. Serious political issues have affected the whole economy and economists predict a two-year recession and downgrading of the country’s credit rating.
The far east is a bit of a mixed bag but without any serious extremes. China has bounced back from a mini dip and growth remains strong, it is predicted that China’s contribution to global GDP will surpass that of the U.S. by 2018. Competition is extremely fierce with every manufacturer wanting a piece of the action. Japanese new car sales were down 15% in 2016 although 2017 is looking better with overall GDP forecast to be up 0.7%. Korea remains the 9th biggest new car market in the world but this is forecast to shrink in 2017.
2017 will see record new vehicle launches and every manufacturer is expecting a return on their huge investments but not everyone will get their expected slice of the pie.