World Vehicle Sales Up 2.2% in Q1
Executive Summary
Growth was seen across the regions, with Q1 record totals posted by many countries.
Global vehicle sales totaled 24.45 million in the first quarter of 2018, up 2.2% from same-period 2017. March sales inched up 1.4% year-over-year to 9.52 million.
Demand in Europe was weak for the month, dipping 3.8% to 2.35 million in March, but the tally was up 1.9% to 5.49 million for the quarter. It was the best Q1 result since 2008’s 5.74 million. While the industry finally reached pre-recession levels, uncertainty over emissions regulations and Brexit trade negotiations may threaten the fragile recovery.
France sales rose 3.5% to 688,000 units in Q1 and Germany sales improved 3.7% to a Q1-record 967,000 despite a slow March. Spain saw a 10.3% boost to just under 400,000 units, though still fell short of pre-2008 levels.
The U.K’s total of 828,000 vehicles was an expected 11.1% drop from 2017’s Q1 record of 932,000 when everyone rushed to purchase a vehicle before the Vehicle Excise Duty started in April. Still, this year’s result came in below 2015’s first quarter despite competitive deals.
Sales were strong across Eastern Europe. Russia ended the quarter 19.1% ahead of same-period 2017 with 409,000 units and Ukraine was up 14.6% to 23,000. Poland improved 10.6% and Turkey ticked up 2.2%, each delivering 163,000 vehicles.
In the Asia-Pacific region, sales grew 2.5% in March to 4.38 million and were 2.4% ahead for the quarter with 11.65 million. It was the biggest Q1 volume ever, despite a 2.3% decline in Japan, the region’s second-largest market.
China saw 2.7% growth in Q1 to 7.18 million, with a 4.7% boost in March. Sales grew over 340% in the last 10 years. China Automotive Information Net (CAIN) shared rumors of possible loosening of foreign joint-venture rules, though cautioned that the change would be mostly superficial since the Chinese auto industry is so complex. It’s a sign the Chinese auto industry and domestic brands may be mature enough to compete with foreign companies.
India sales soared 12.3% to 1.15 million, the third quarter in a row over 1 million. Vehicle sales in this developing economy have more than doubled in the last decade, though still there are roughly 28 persons per vehicle.
Sales in South Korea dipped 1.1% to 425,000 through March, amid tense diplomatic talks with North Korea, Japan and the U.S. Demand for imported vehicles climbed 22.6% in the period, though they held just 16% of the market. Mercedes and BMW comprise more than half of the imported passenger vehicles.
South America saw 15.0% growth to 1.04 million for the quarter, extending an 8-month stretch of double-digit growth as the region recovers from 2016’s bottoming out.
Sales soared 18.1% in Argentina to 271,000 vehicles and improved 15.6% in Brazil to 546,000. Chile also saw a huge 20.9% boost to 102,000, though the smaller markets contracted.
In North America, demand was up 1.4% to 4.99 million in Q1. The U.S. improved 2.4% to 4.20 million for the quarter after an unexpected 6.6% boost in March. Canada saw 2.5% growth to 440,000, while Mexico sales fell 10.7% from year-ago’s record levels to 346,000.
Market share across the regions held steady year-over-year through the wave of growth: North America held 20.4%, Asia-Pacific region commanded 47.6% and Europe accounted for 22.4%.
