By 2021 the global automotive production will increase by 21 million units per year, predict analysts IHS Automotive. According to the expert report from 2009 until now the industry has started to produce 21 million more cars, which is a consequence of the recovery process of the global economic crisis.
Studies show that China will dominate, North America will continue to recover, attracting foreign investment, and the automotive industry in Europe will regain its pre-crisis. According to IHS production in Japan and South Korea will decrease by 2021, as local manufacturers of OEM to turn to foreign markets.
Falling demand for cars in Russia and Turkey will limit the increase in European production to just 1% this year, analysts said. However, from 2015 to 2017 from the factories on the continent will come out 4% more new cars, which will be the result of recovering local markets and sustainable growth in exports, mainly to the US and China.
Currently 70% of production in Europe cars are sold to Western markets. IHS expects that to change by 2021, when the percentage is expected to namaleee to 50%. The largest growth is expected in Spain and Italy, which were hardest hit by the economic recession.
“European carmakers will have to deal with different market situation than that which is accustomed in recent years,” said Dennis Shimoul, who is the manager of the department of IHS Automotive, responsible for European production cars.
“The segments are changing globally as emerging markets tipped the balance, and the rest of the world is forced to cope with increasingly stringent environmental standards,” says Mark Fultorp, director of the team, which monitors global automotive at IHS Automotive.