Sales in the three main markets – China, the United States and Europe – should remain steady in 2016 after a yearly increase of respectively +7% (21 million units), +6% (17.8 million units) and +9% (14.1 million units) in 2015. India’s sales dynamism will also keep momentum with again a +10% increase this year. In Japan we expect sales to rebound after a -9% decrease in 2015 due to the VAT increase in April 2014.
Conversely two important emerging markets will continue to face major difficulties in line with macroeconomic turmoil: (i) in Brazil we expect sales to decline further by -7% this year after -24% in 2015; (ii) in Russia automotive sales are forecasted to fall by -11% in 2016 after a -32% drop to 1.6 million units in 2015.
Car manufacturers need to adapt their offerings to each market to stay competitive. Notably, low cost models should be rolled out for India, larger Sports Utility Vehicles (SUVs) for the United States, and medium and premium models for all markets