The global auto industry is bigger than ever after sales of cars and light trucks grew by around four per cent to 75 million this year, analysts have told the Financial Times.

IHS Automotive and LMC Automotive, formerly JD Power Automotive Forecasting, have given a positive outlook for the car industry in 2011, despite setbacks such as the earthquake in Japan and the sovereign debt crisis in Europe.

The fastest growth in car sales this year was in Eastern Europe, including Russia and Turkey, followed by South America, according to IHS.

Sales in the US soared by nine per cent as the market recovers, while China saw growth of a relatively modest five per cent.

"We are seeing North America grow more than China both in relative and absolute terms," IHS analyst Christoph Stuermer told the FT.

Japan, however, saw sales dip by around 20 per cent as a result of the disruption caused by the March 11th earthquake and tsunami.

Bloomberg reported last week that the country's auto industry group, the Japan Automobile Manufacturers Association, is delaying its 2012 domestic sales forecast until it has carried out a review of the impact of the flooding in Thailand that caused further supply problems to automakers.

Chairman Toshiyuki Shiga indicated that demand for cars, trucks and buses in Japan could fall by 14 per cent this year.

According to the FT, both ISH and LMC believe Volkswagen will overtake GM and Toyota to become the number one car maker in the world next year.

The two analyst firms predict further light vehicle sales growth in 2012 of between four and five per cent.

Source:

Car industry grows to record size in 2011 (18/12/11)

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