Growth in Global Auto Production to Slow in Second Half

Auto production climbed 9% in the first six months of 2012 compared with the same period last year, according to IHS Automotive. But the firm predicts full-year output will grow only 5% as output slows in the second half.

The research firm has lowered its worldwide forecast by nearly 484,000 units from its previous estimate in April, citing Europe's financial crisis. IHS now expects full-year global output to reach 80.7 million vehicles.

Shifts in regional output will be mixed, IHS says. Production in Japan and the U.S. advanced strongly in the first half and are expected to post full-year gains of 21% to 9.5 million vehicle and 16% to 9.8 million units, respectively.

Auto output across Europe fell 5% in the January-June period, led by an 8% drop in the western part of the region. IHS expects a regional 6% decline to 19 million vehicles for all of 2012.

Demand in China is easing because of domestic economic concerns and a reduction in exports to Europe. Full-year growth is likely to increase more than 6% to 18.4 million units, IHS calculates.

South American production fell an estimated 8% to 2 million units in the first half, mainly because of weaker demand in Brazil. But government incentives are prompting a sales rebound. IHS predicts Brazil's 2012 output dip 3% to 2.3 million units.