The latest Global Auto Report from Scotia Economics predicts that the emerging markets of China, India and Russia will continue to lead auto sales globally in 2011.

Sales growth in China is expected to reach around 15 per cent over the year, although the expiration of government scrapping incentives in the country and restrictions on licence plate issuance in Beijing could put the brakes on sharper growth.

Meanwhile, India's market, which has been the second best-performing major auto market over the past ten years, remains hampered by low vehicle penetration which languishes at the lowest in the world.

However, senior economist at Scotia Economics Carlos Gomes explained: "India enjoys a special demographic advantage, one of the world's youngest populations, half of its 1.2 billion inhabitants are less than 25 years old.

"In fact, India is home to 20 per cent of world's population under 25 years of age."

In Russia, car sales spiked by around 30 per cent during 2010 and are expected to reach double-digit gains throughout this year, spurred on by government incentives to buy new cars.

The greater availability of automotive credit and better employment prospects in Russia are also helping to encourage consumers in the country to make big-ticket purchases, the report states.

Finally, vehicle sales in the US are expected to be driven by stronger retail volumes in 2011 as motorists replace older vehicles: the average age of a US vehicle currently exceeds ten years for the first time on record.

"The recovery in global car sales has shifted gears and will increasingly be driven by improving labour markets," added Mr Gomes.

"This represents a healthy transition from the massive and synchronised monetary and fiscal stimulus that was required to get the industry, and the global economy, back on a positive growth trajectory."

Recently, TheGreenCarWebsite.co.uk reported that KPMG's new 2011 Global Automotive Executive Survey found that investment in alternative fuel technologies is a key priority for the vast majority of auto executives.

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U.S. is Down, But Not Out as China, India and Russia Lead Global Auto Sales to Record Highs in 2011: Scotia Economics (5/01/11) 

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