Thu, November 05, 2009
China will surpass the US as the biggest light vehicle manufacturing country by the end of 2009, according to a report released by PricewaterhouseCoopers.
'China will supplant perennial assembly leaders (US and Japan) and become the No. 1 light vehicle manufacturing country in 2009 – a position that will only be relinquished in the future under extraordinary circumstances," Steve D'Arcy, global auto leader of PricewaterhouseCoopers said at the press release of the report.
The first quarter prognosis for Chinese light vehicle assembly suggested a likely outcome of some 7.6 million units, according to the report.
And the success of the central government's stimulus program in igniting sales in China's interior markets has driven their latest fourth quarter forecast above initial projections by 2 million units.
While there is much confidence in China's future prospects, uncertainty still clouds the outlook for other major vehicle producing countries in 2010, the report predicted.
2009 played witness to immense industry turmoil characterized by massive volume decreases, capacity rationalization, non-core asset disposals, and widespread bankruptcy, which kept monthly sales to hover between 9.1 and 9.9 million units with the exception of July's 11.2 million and August's 14.1 million spike.
Assembly is expected to bottom out in 2009 as lingering recessionary trends push volumes to an historic low of 8.3 million units.
As the North American market begins its long road to recovery, initiatives to reorganize, recapitalize, and reinvent to meet new market realities present a significant opportunity for the domestic industry to forge a new identity beginning in 2010.
