Within the next five years global auto sales will hit 100 million, according to a Detroit Free Press report. Current levels are hovering at around the 82 million mark.
The US, which is one of the world’s biggest auto markets, will play a lead role in this surge. It has largely recovered from the freefall it went into after the 2008 recession. From a low of 10.4 million units in 2009, the USA has slowly recovered to an expected figure of 15.5 million this year.
The report also says that despite the US market being on track for further growth, the pace of that growth would reduce. This will be offset by rapid growth in regions like China, Thailand, Brazil and Chile helping the global auto market grow by 22 percent over the next four years.
The slowing pace of growth in the US, coupled with the faster growth in the rest of world, would only put more pressure in component manufacturers in the USA as car makers are targeting more product launches than ever in 2014, with close to 57 new models planned.
This will, however, boost USA’s production capacities by 2 million to take it to a total of 18.2 million cars and trucks per annum by 2020. Europe has also seen a recovery over the last year or so, with markets like UK actually registering growth.