PARIS, FRANCE: Global car sales will grow by 4.8% next year pulled by unexpectedly strong demand in China, the credit rating agency Moody's forecast on Wednesday (4 September).
In a report, Moody's also upgraded its estimate for growth of the world car market this year to 3.2%.
The agency said that the Chinese car market was growing faster than gross domestic product in this Asian economy.
Consequently it was revising its estimate for the growth of Chinese demand for cars to 10.0% from an estimate in January of 7.0%, for both this year and next.
Moody's held to its forecast that the car market in Europe would contract by 5.0% this year from the 2012 level.
The agency said that in 2014 the European market would grow by 3.0%, lower than a previous estimate of 5.0% growth next year.
Another study by auditing and consultancy group PwC in August said that the global car market would expand in the next few years, mainly because of growth in demand from China where sales were expected to double by 2019.
Moody's said that the outlook for demand for new cars in Brazil was clouded by increased interest rates, high inflation and growing household debt.
It said that there were also risks for the future demand in Russia.
"European suppliers of new equipment to the car industry depended on these markets to limit losses in western Europe where weak demand and over-capacity would continue to weigh on the margins of French manufacturers Peugeot Citroen, and on Fiat of Italy," Moody's said.
The margins of German suppliers for the manufacture of new cars would continue to fall but margins for Japanese car manufacturers would be boosted by the fall of the yen.
"Manufacturers in the United States should be able to maintain their margins in the next 12 to 18 months, but these could be slightly compressed by increased competition and by a slowing of growth of the US economy," Moody's said.
I-Net Bridge For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field. Go to: http://www.inet.co.za
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.