The Global Car and Automobile Sales industry fared well through the recession, but growth is expected to slow as weak European countries put the brakes on performance. The current year will see strong growth due as the industry settles into its long-term growth path. For these reasons, industry research firm IBISWorld has added a report on the Global Car and Automobile Sales industry to its growing industry report collection.
Los Angeles, CA — The Global Car and Automobile Sales industry is in the breakdown lane following a stormy end to 2008. The financial crisis that crippled the US economy rippled through other countries around the globe, causing unemployment to rise and wealth to dive. “Due to lower disposable income and growing pessimism about the future, demand for cars dropped,” said IBISWorld industry analyst Aries Nuguid. Motor vehicle sales crashed in 2008 and 2009, although they have recovered strongly since. Industry revenue is expected to grow at an annualized 1.4% over the five years through 2012 to reach $3.96 trillion. Revenue growth of 3.4% is expected in the current year as the industry settles into its long-term growth path.
Many governments around the world offered scrappage incentives, cash rebates, and other measures to offset some of the decline in sales. The story was different in emerging economies, where car sales did not suffer as much during the global recession. Car sales rose in China, Brazil and India during 2009, albeit with a little help from government incentives. According to Nuguid,Unlike in the United States, stimulus schemes in developing nations were highly effective in boosting car demand to new highs. IBISWorld estimates that pent-up demand, supported by better economic times, will drive up sales over the next five years. Industry revenue is expected to rise over the five years through 2017. However, weak European economies will hinder this performance. The top four companies in this industry account for an estimated 1.0% of industry revenue. The Global Car and Automobile Sales industry is highly fragmented, with even the larger dealerships accounting for less than 0.5% of the market each. This is not surprising as there are over 200,000 enterprises in the industry. The low level of market share concentration is also due to the wide range of new and used motor vehicles sold within the industry.
Concentration is low across the globe, with each company accounting for less than 5.0% of the market in each country. This is particularly true for new car sales, while concentration is higher within used vehicle sales in mature economies. In emerging nations, companies that sell used vehicles are generally very small and basic. Concentration in the Western world is expected to rise over the next five years, as the industry addresses an overcapacity issue and consolidates. It is not expected to change much in emerging nations though. For more information, visit IBISWorld’s Global Car and Automobile Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry is involved in the retailing of new and used motor vehicles mainly through dealerships, commission agents and car auctions. Products sold in this industry include: passenger cars, SUVs and light trucks, heavy trucks, buses, recreational vehicles, and specialty vehicles such as ambulances and fire trucks. Retail sales of motorcycles, mopeds and bicycles are not included in this industry.
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
