Global car sales are set to reach an eighth consecutive annual record that would represent the longest automotive industry up-cycle in recent decades, according to analysis from Scotiabank.
The up-cycle comes at a time when the global economy is rapidly expanding, leading to a re-acceleration in global sales. Developing markets like China are at the forefront of the sales gains.
“Stronger-than-expected economic growth in China is also a key contributor to the recent global sales acceleration, especially since it is being accompanied by firmer car prices and inventory normalization,” according to a news release issued by the bank.
China’s new car sales are expected to surpass 24 million units and account for 30 per cent of global volumes, compared to 25 per cent three years ago.
The boost in global sales follows a moderating trend that settled in after a sales tax incentive in China expired at the end of 2016.
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