Asia to Drive Record-High World Passenger Vehicle Output

Global production of cars and light trucks in 2014 will advance almost 4% to a record 87.4 million units, led by strong growth in China and India, LMC Automotive predicts.

Output in Asia will jump 6% to 45.2 million units, according to the market analysis firm. Schuster forecasts gains in all regions except Japan, where declining exports and a hike in the consumption tax in April will result in a 1% dip in production, the LMC forecasts.

The firm says regional volumes will grow everywhere except South America, where economic problems and local import restriction will trim output by 4%.

In North America, bad weather and overproduction in the fourth quarter of 2013 pushed dealer inventories to 75 days, about 25% higher than normal. But Jeff Schuster, who heads forecasting at LMC, still expects output to grow nearly 3% to 16.5 million units this year. He adds that slowing growth rates will create a very competitive environment for carmakers.

In Europe, production will advance almost 2% as output in western Europe returns to growth after three years of decline.

Schuster expects output in eastern and central Europe will rise nearly 3%, aided by rising export volume. But he cautions that Europe overall remains "very weak" and could falter if vehicle production in Russia and Turkey slips.