Global Light-Vehicle Market to Grow 4% This Year

Sales of light vehicles will rise to a record 92.6 million worldwide this year from 89.2 million in 2015, according to LMC Automotive. The 4% growth rate is double last year’s pace.

Senior analyst Jeff Schuster says growth in the world’s gross domestic product should rise 2.6% this year compared with 2.5% in 2015, thanks to a “solid economic picture” in most markets.

Schuster predicts U.S. sales in 2016 will rise 2% to a record 17.8 million vehicles. He also expects record volumes in Mexico and Canada. The South American market will continue to shrink, dragged down by a 12% drop in sales in Brazil.

India will be the world’s fastest-growing market in 2016 as sales jump 10%, Schuster says. He expects sales in China to revive this year, driven by carmakers' efforts to hike sales in the country’s second- and third-tier cities.