Global Vehicle Production to Increase by 21 Million Units by 2021; China to Account for Half of the Increment, Europe and North America to Experience Growth and Japan Production to Decline, According to IHS Automotive
OEMs to Shift Global Sourcing Strategy Outside Their Home Region; Demand from Southern and Eastern Europe Expected to Drive European Production Recovery
BERLIN--(BUSINESS WIRE)--Global automobile production will increase by 21 million units by 2021, and has grown by 25 million units since 2009 as the industry continues to recover from the impact of the global economic recession, according to a forecast by IHS Automotive, part of IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. These topics will also be discussed at length at the IHS Forum in Berlin (12-14 May).
China will dominate, but there is a considerable upside attached to the North American industry as it attracts foreign investment, and in the European industry as its domestic markets climb back. Japanese and South Korean production will decline as local OEMs focus their efforts overseas.
Demand Shifts in Europe
Declining vehicle demand in Russia and Turkey will limit European production growth to one percent this year, according to IHS Automotive. However, from 2015 to 2017 European output is expected to increase by four percent per year, led by the recovery of domestic demand and sustainable increase in exports, primarily to the U.S. and China.
While it currently consumes 70 percent of European production, Western European demand will contribute only 50 percent of production growth expected by 2021. Of this share, more than a half will come from Spain and Italy as they recover from enormous losses experienced during the years of recession.
“European car makers will meet divergent demand environments, depending on which part of Europe they are more exposed to,” said Denis Schemoul, manager Europe vehicle production forecasting, IHS Automotive.
“Segments are changing globally as the emerging markets tip the balance and mature markets come under pressure to downsize,” said Mark Fulthorpe, director global vehicle production forecasting at IHS Automotive, who will be presenting these findings and additional automotive industry insight during a joint presentation with Denis Schemoul during the upcoming IHS Forum in Berlin on 13 May.
IHS Berlin Forum will bring together top IHS experts who will provide outlook across industry sectors and address the business impact of current affairs in the marketplace.
Attendance & Registration
The IHS Forum, Berlin 2014 will be held at the InterContinental Hotel Berlin from 12-14 May. Further information and delegate registration is available at http://ihsglobalevents.com/forum/berlin2014/.
Members of the press can register for a complimentary pass to the IHS Forum in Berlin by sending an email with name, title and outlet details to email@example.com.
A full agenda and additional information can be found here: http://ihsglobalevents.com/forum/berlin2014/agenda/
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