CHENNAI- Worldwide auto sales are all set to hit a record high of 80 million units this year says a latest global estimate, riding on the back of a demand rebound in two key markets – the US and Japan. That’s good news for an industry that’s battling serious demand downturn in Europe, particularly in markets like Spain and Italy, and some growth loss even in top gear markets like China, India and Brazil. The American market has returned to the growth path after tanking out in 2009 and Japan has also overcome its earthquake and tsunami jolts in 2011 to stage a smart recovery.
The revival of growth has also put Toyota back in the number one position with arch rivals Volkswagen and General Motors nipping at its heels. Auto experts say either of the three can pip the others to the top spot and the race will remain open for the next three to four years. Volkswagen’s big trump card is China where GM also has a strong presence. It’s the only European volume car brand not affected by the Euro crisis which has already claimed several scalps among European vehicle and component manufacturers.
All three of the top dog contenders are also eyeing another benchmark which has so far eluded all vehiclemakers in the industry – the 10 million sales mark. All three have targets to hit the 10 million mark globally within the next couple of years and they are within sniffing distance of that goal. For India, the demand rebound is good news particularly for the component industry which was battling a slowdown at home alongside a global demand downturn. Besides MNC carmakers that have set up export facilities as part of their Indian production lines will also cheer the turnaround though there aren’t too many models made in India that find their way to the US or Japan.
