World Vehicle Sales On Record Pace Through First Half

Global vehicle sales climbed 2.8% in the first six months of 2014 with 43.5 million units sold, the largest first-half volume on record. All regions posted gains over year-ago with the exception of South America, where sales tumbled 13.1% from like-2013.

Deliveries in South America continued to plummet in June, raising the year-to-date total to just 2.4 million units for the first half of the year. That marks a drop of nearly 400,000 units from the first six months of 2013.

Brazil, the region’s largest market, witnessed a sharp decline with sales down 7.6%. Extended tax breaks on vehicle purchases were not enough to outweigh a significant slump in consumer confidence following major price increases (due to new safety regulations) and growing interest rates.

Argentina, Chile and Venezuela also posted substantial declines in the first six months of the year, down 33.8%, 9.9% and 85.6%, respectively.

Increased vehicle sales in the remaining regions of the world, however, were able to keep total global deliveries higher than the first six months of 2013.

Vehicle sales in the Asia-Pacific region climbed 4.9% through June with 21 million vehicles sold, accounting for 48.4% of total global deliveries.

China sold 11.7 million vehicles in the first half of the year, rising 8.2% above the 10.8 million vehicles sold in first-half 2013. Japan (+10.9%) and South Korea (+7.4%) also witnessed a surge in sales, while other countries such as India (-7.2%), Australia (-2.4%) and Indonesia (-27.7%) reported losses.

Deliveries in North America totaled 9.7 million units through the first half, up 3.9% from like-2013.

The U.S. and Canada both witnessed modest growth, up 4.3% and 2.8%, respectively, while Mexico sales remained relatively flat, falling just 0.8% from year-ago.

Through June, North America held a 22.4% share of the worldwide market, tying Europe for second behind the Asia-Pacific region.

Despite posting sales declines in both May and June, Europe was able to stay in positive territory for the first half of the year, climbing 2.2% to 9.7 million units.

Germany (+2.9%), France (+2.5%) and the U.K. (+10.7%), three of the largest European markets, bolstered vehicle sales in the region, while other countries witnessed downturns. Russian deliveries fell 8.1% through June. The country’s ongoing conflict with the Ukraine has pushed the value of the ruble down, making many imported vehicles more expensive during a time when consumer confidence already is low. Turkey sales slumped as well, dropping 24.4% from year-ago with the impending presidential election keeping many consumers from making large purchases.

At the current growth rate, global vehicle sales would top 88 million units by year-end.

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