CSM Worldwide expects European light vehicle sales to grow 2 percent in 2007, which will move the market beyond 21-million units for the first time. The current year is likely to come in at 20.8-million units, up 2.4 percent over 2005, and positive growth is forecast across the region.
In West Europe, demand is expected to grow by 2.3 percent, mainly due to continued positive development in Italy. The 2006 slowdown in France and Spain is forecast to stabilise, giving a flat outlook for 2007. In Germany the gains made in 2006 will be maintained in 2007 as stronger economic fundamentals and high replacement demand should be sufficient to balance any pull-ahead experienced this year from the pending VAT rise. The U.K. will see another year of negative growth.
"2007 is a critical year for several OEMs in the European market," said Henner Lehne, market analyst for CSM Worldwide European Vehicle Forecasts. "More than 70 new vehicles will be launched, with the European D and SUV segments both posting growth of about 12 percent. Most of the new-product launches will take place in these two segments."
The largest OEM in 2007 in Europe will be Volkswagen Group with sales volume of about 3.4-million vehicles. Within the top-10 largest OEMs, Hyundai will post the strongest growth rate with 17 percent, resulting in a sales volume of 970,000 units. Most of that growth will be generated in the Central and Eastern European markets. DaimlerChrysler’s growth is expected to be second as the Mercedes brand recovers from recent weaknesses and the Smart brand, with the new fourtwo, is expected to perform strongly. In contrast to the U.S. market, both Ford and GM are forecast to see sales levels improve in 2007.
CSM Worldwide provides trusted automotive market forecasting services and strategic planning solutions to the world’s top automotive manufacturers, suppliers and financial organizations. CSM Worldwide covers the global automotive environment from Detroit, Frankfurt, London, Paris, Tokyo, Shanghai, Grand Rapids, São Paulo, Budapest and Bangalore.
