Global sales of light vehicles will increase by two per cent on a year-on-year basis in 2010, according to a new report.

Rating agency Moody's believes that 65.3 million units will be sold during the year, with that figure rising to 70.2 million (an increase of seven per cent) in 2011.

In addition, the company noted that it expects sales in China to hit 14.3 million in 2010 and 15.7 million next year, up from previous estimates of 11.8 million and 12.9 million respectively.

"We expect the Chinese light vehicle market to remain on a growth path for the next two years with demand rising ten per cent each year, driven by accelerating GDP growth and the still-low level of auto ownership," read one section.

Moody's also revealed that it believes new registrations of light vehicles will rise by ten per cent this year in the US, which has suffered a 40 per cent sales drop since 2005.

Although the report suggested that Japan would experience a slight improvement, it predicted that Europe could suffer a 15 per cent slump as scrappage schemes across the continent come to an end.

Moody's, which was founded in 1909, is currently believed to have a 40 per cent share in the global credit rating market.

Source:

Moody's raises global car sales forecast on China strength (04/02/10)

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