Auto manufacturers to benefit from "record" growth, says PwC
The Midlands’ auto manufacturers are set to profit from global record levels of light vehicle assembly. That’s according to PricewaterhouseCoopers' (PwC) latest Autofacts report, which forecasts "unprecedented" levels of activity.
Despite a low demand for light vehicles following the global economic crisis, PwC’s latest Autofacts report said that “a significant number” of auto manufacturers have been rebalancing inventory during 2010 and this, combined with increasing demand from emerging markets, has led to an unexpected record level of vehicle assembly this year.
According to the latest Autofacts forecast, Japan, Western Europe and the US boosted light vehicle sales by 5.6 per cent in the first eight months of 2010. That figure is equivalent to almost a 1.1 million unit sales improvement.
However, it was the BRIC countries (Brazil, Russia, India and China) that led growth, boosting sales by a third (33 per cent), the equivalent to a 3.5 million unit increase.
Chris Hibbs, partner and manufacturing sector expert at PwC in the Midlands, said: “Uncertainty about the impact of austerity measures and the effects of government incentive withdrawals are being felt by Midlands auto manufacturers and it should not be surprising that sales during 2010 were in decline or stable at best.
“However, thanks to demand from emerging markets and moves by manufacturers to rebalance inventories after cutting back aggressively in the first half of 2009, global light vehicle assembly output in 2010 is on track to beat the 2007 pre-crisis record.
“Sustained demand for light vehicle assembly is positive for the Midlands auto sector as a whole because this will provide confidence for the longer term investment decisions that need to be made by all suppliers to support high growth platforms. The removal of unsupportable levels of vehicle inventory should provide a more stable supply versus demand, which will enable better planning.”
