World’s car market rose 8.5% in July 2012. Top 25 countries ranking report.

The global light vehicles market (car passengers plus light commercial vehicles) is really healthy this year and July confirmed the momentum, despite the ongoing headwinds associated with the Western Europe sovereign debt problems and moderation in global economic activity pace. Car sales were advancing in every region, with the exception of Western Europe, pushed by a strong car loan market growth and government incentives.

We report the exclusive focus2move.com Top 25 Global Markets report. In July, the Top 25 countries posted 5.7 million vehicles, up 9%.

In July, the two fastest markets, Thailand and Japan were supported by extraordinary incentives while China and Brazil were resurging from a low pace period sustained by governments actions. Incentives are also pushing up the Russian market that’s growing since 28th months.

Thailand in July was 43% up and the incentives will have effect all the year, moving the market above 1.2 million The country surged in world’s 11th position in July (13th year-to-date), up 9 spots from last year.

Japan posted 517.000 sales in July up 42% and is now projected to exceed the 5.2 million sales this year. However, incentives will end in August and a sharp decline is foreseen at the end of the year.

China, the biggest world’s market, was steady until the Government created a RMB 6 billion (US$ 952 billion) subsidy program for purchases of fuel efficient cars with engines of less than 1.6 liters. Since the introduction of the program in May, car sales have advanced 14% year-on-year, from only a 1% increase through April. In addition, while GDP growth moderated to 7.6% year-on-year in Q2 from an average of 10% over the past decade, much of the slowdown reflects weaker exports and investment spending. In contrast, employment and urban income growth show no signs of abating. In particular, employment growth outside of Beijing and Shanghai is gaining momentum, keeping per capita urban income growth at 12.5% year-on-year. In addition, car sales in China closely track money supply growth, which has picked up since September alongside increased monetary stimulus.

In Brazil, market was declining year-to-date April and when the government approved a US $ 10 billion stimulus package the market boomed. In July it was 351.000 units, up 22%. The package includes suspending an industrial tax and freeing up nearly US $ 8.8 billion in bank deposit requirements for lenders to boost auto loans. The tax break is set to expire at the end of August, creating some concern about the outlook. However, one of the key reasons for the slowdown in Brazil’s auto sales earlier this year was that rising loan delinquencies prompted lenders to tighten lending standards. Since the introduction of the government initiatives, auto loan rates have dropped by more than 3 points and delinquencies have declined.

The incentives effect in Russia is slower this year, after the huge jump posted by the market in the 2011. However, this year market is on target to surpass the pre-crisis peak of 2.9 million units, supported by government policies to increase auto financing, a rising middle class, record-high oil prices (Brent) and below-average vehicle penetration. The government has set aside 3.3 trillion rubles for auto loans this year, up from 2.8 trillion in 2011. An additional 2.1 trillion rubles will be provided in 2013.

In July, Indonesia posted a 18% increase surging in 14th position, up 6 spots from last year and also Saudi Arab, Malaysia and South Africa were growing in the range of 20%.

Negative performance were registered by Spain (-25%), The Nederland (-24%), Italy (-19%), Iran (-17% estimated), South Korea (-6%), France (-5%), Germany (-4%) and Argentina (-3%).

In the table below, the Top 25 World’s Countries in July:

2011 Rank

July 2012 Rank

Country

July 2011

July 2012

Change

1

1

China

1.257.949

1.370.861

9,0%

2

2

USA

1.059.102

1.153.215

8,9%

3

3

Japan

363.229

517.927

42,6%

4

4

Brazil

287.960

351.410

22,0%

5

5

Germany

280.027

266.878

-4,7%

6

6

Russia

224.865

255.560

13,7%

8

7

India

175.838

195.558

11,2%

7

8

France

189.996

179.438

-5,6%

9

9

United Kingdom

148.796

160.016

7,5%

12

10

Canada

141.500

148.350

4,8%

19

11

Thailand

91.739

131.646

43,5%

11

12

South Korea

140.508

131.336

-6,5%

10

13

Italy

151.233

121.561

-19,6%

20

14

Indonesia

76.223

90.405

18,6%

14

15

Australia

80.991

84.641

4,5%

13

16

Iran

93.473

77.582

-17,0%

16

17

Mexico

68.533

76.376

11,4%

18

18

Argentina

73.039

70.510

-3,5%

15

19

Spain

87.675

65.322

-25,5%

17

20

Turkey

62.907

62.304

-1,0%

23

21

Saudi Arab

50.322

61.066

21,4%

24

22

Malaysia

48.217

58.343

21,0%

25

23

South Africa

43.438

51.625

18,8%

21

24

Belgium

38.935

40.750

4,7%

22

25

Nederland

46.420

35.217

-24,1%

 

 

 

 

 

 

 

 

Top 25 Markets

5.282.915

5.757.897

9,0%

 

 

Global Sales

5.954.468

6.460.552

8,5%

Looking at the year-to-date July trends, the global market was 46.9 million, up 6.9% from last year, while the Top 25 countries reached 41.9 million, up 7.3%.

Japan was the top performer with 52% increase, followed by Thailand, at 45%, and Indonesia, at 26%. Strong performance posted by Saudi Arab (+15%), US and Russia (+14%), India (+12%).

Losing over 20%, Italy was again the worst market, followed by Iran and Turkey (-17%), France and Spain (-12%).

Thailand surged in in 13th position from the 19th last year, while Indonesia was 15th, 5 spots up from 2011 and Saudi Arab surged in 20th from 23rd last year.

Spain had lost from 15th to 18th position, while Turkey dropped from 17th to the 22nd position.

In the table below, the World’s Top 25 car market ranking in July:

2011 Rank

Ytd July 2012 Rank

Country

Ytd July 2011

Ytd July 2012

Change

 

 

 

 

 

 

1

1

China

10.499.149

10.875.537

3,6%

2

2

USA

7.388.386

8.421.721

14,0%

3

3

Japan

2.233.195

3.414.037

52,9%

4

4

Brazil

1.925.953

1.984.218

3,0%

5

5

Germany

2.012.912

2.010.677

-0,1%

6

6

Russia

1.453.928

1.663.702

14,4%

8

7

India

1.452.357

1.629.318

12,2%

7

8

France

1.637.802

1.434.702

-12,4%

9

9

United Kingdom

1.311.715

1.337.482

2,0%

12

10

Canada

949.200

1.014.111

6,8%

10

11

 Italy

1.262.227

999.330

-20,8%

11

12

 South Korea

941.529

892.582

-5,2%

19

13

Thailand

504.914

736.648

45,9%

14

14

 Australia

577.232

627.556

8,7%

20

15

Indonesia

436.869

551.001

26,1%

16

16

 Mexico

481.659

538.614

11,8%

13

17

Iran

654.308

538.402

-17,7%

15

18

 Spain

586.704

513.700

-12,4%

18

19

Argentina

513.003

510.295

-0,5%

23

2

Saudi Arab

352.097

408.221

15,9%

22

21

 Nederland

409.920

401.887

-2,0%

17

22

 Turk

483.950

399.587

-17,4%

24

23

Malaysia

336.822

353.206

4,9%

25

24

South Africa

307.918

343.413

11,5%

21

25

Belgium

401.137

356.989

-11,0%

 

 

 

 

 

 

 

 

Top 25 Markets

39.114.886

41.956.936

7,3%

 

 

Global Sales

43.893.710

46.920.709

6,9%

 

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