Global car market under financial crisis

　　Financial crisis sweeping throughout the world in 2008 hit the global car market which had been steadily rising before the crisis. In 2009, global car sales reached about 63 million units, down 8% year on year. Booming China surpassed the United States as the largest auto country in 2009. Among the top five auto countries, car sales of the United States plummeted 22%, Japan dropped 8% while car sales of Germany and Brazil maintained double-digit growth. Car sales of Chinese car market, nevertheless, rose from unknown 1.46 million units in 2000 to more than 130 million units in 2009, almost increased 10 times the size in 10 years.

　　Situation of the global car market in 2009 differed sharply with some saw increase and the rest endured decline. In addition to big decline of the United States and Japan, most car market of developed countries gloomed, and some countries such as Germany had to use auto replacement policies to stimulate the car market. Car market of developing countries also differed. Some countries affected far more than developed countries while in some areas the effect was relatively small. Financial crisis triggered by subprime mortgage of the U.S. not only forced global auto giants adjusted or integrated but also injected new energy into global car market.

　　Steady growth of BRIC

　　In 2009, in addition to the Chinese market’s growth of 45% which has been outstanding in the major countries, performances of other BRIC countries including Brazil and India were also great. In 2009, car sales of Brazil broke 3 million units for the first time, up 12% year on year. India car sales broke 2 million units for the first time, an increase of 17% year on year. Car sales of Russia increased dramatically before, however, it plummeted 61% year on year impacted by big fluctuation of oil price in 2009. As a result, ranking of Russia in global car market fell from No. 5 in 2008 to 12th in 2009.

　　Although economy of Russia was far from satisfactory in BRIC, BRIC still played a vital role in helping the growth of global car market. In term of contribution rate, contribution rate of BRIC to global car market has increased to 32% in 2009 from 8% in 2000, up 24% in latest 10 years. At the same time, contribution of G7 dropped to 44% in 2009 from 67% in 2000, down 23%. BRIC gradually replaced the market share of G7 during 10 years, and managed to become growth engine of global economy.

　　Developed countries in the doldrums

　　As birthplace of the financial crisis, U.S.’s car market was also hit by the crisis. The United States lost the largest car market status in the world in 2009. The license number of the light vehicle was only 1053, down nearly 20% year on year for two consecutive years, and market size of U.S. fell to 10 million units from 16 million units in just two years.

　　Situation of other major Western countries was also not optimistic in 2009. In 2009, G7 generally adopted auto replacement plans so as to stimulate their car market. However, only Germany and France benefited from the auto replacement plans, and car sales respectively increased 18% and 14%. Car market of other countries still declined in spite of stimulus plans but only reduced the drop rate.

　　Emerging countries deeply divided

　　Financial crisis not only swept the developed countries but also hit emerging countries. In addition to the BRIC, car market of other emerging countries deeply divided because of the economic relevance.

　　Eastern Europe:

　　Their economy heavily depends on the Western Europe. Consequently, after the financial crisis their economy lost support as Western Europe had no energy to save other countries. In 2009, car sales of the new EU 10 members all fell. Among them, car sales of 6 countries declined by 50%, and only Poland and Slovakia saw smaller decline.

　　The Middle East:

　　The Middle East was heavily affected due to oil economy. In 2009, sales of countries which heavily depend on oil economy including Saudi Arabia, United Arab Emirates and Kuwait decreased about 80%. Car sales of Iran declined only 3% because it does not use U.S. dollars for oil trading settlement so that avoided sharp fluctuations in oil prices. Car sale of Iraq which is under reconstruction was flat compared with 2008.

　　Latin American countries:

　　Located in U.S. backyard, Latin American countries were hit by the financial crisis especially Mexico. In 2009 car market of Mexico declined 32%. Thanks to similar reasons to Middle East countries, car sales of Venezuela plummeted 78% year on year. Thanks to growth of Brazil, Latin American market stabilized and car market of other South America countries declined slightly at a speed of 10%. Car market of Peru even increased 29% in 2009.

　　ASEAN 10 countries:

　　ASEAN 10 countries were the biggest highlight during the financial crisis in addition to BRIC. These countries whose economy is closed related with China are away from Europe and the United States mainland survived from the financial crisis. Car sales of Malaysia, Indonesia, the Philippines and Vietnam were in the double-digit increase in 2009. Increase of Vietnam was 48% that even surpassed China. Car market of Singapore based on finance dropped 37%. Car sales of Thailand and Myanmar saw double-digit decline as their domestic political situation is unstable.

　　Another area less affected by the financial crisis was the African continent. In addition to the major economies South Africa and Egypt’s double-digit decline, car markets of most African countries climbed slighted in 2009. However, considering that small economic capacity of African countries and small capacity of its auto market, share of the whole African car market accounts for less than 2% of global car market share. (Translator: Qinghua Wade)

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