Positive predictions drive optimism in auto industry

Government intervention has put the global auto industry in a position to power itself out of the recession, and to grow by around 50% between 2010 and 2014, according to the latest PricewaterhouseCoopers (PWC) survey of the sector. “Because of the industry's powerful economic multiplier effect, the auto manufacturing sector is considered by many as simply too important to be allowed to fail – especially during periods of recession. In Europe, for example, it is estimated that two million are employed directly in the industry, with 12 million more employed indirectly,” says PricewaterhouseCoopers auto expert Calum MacRae. What will fuel confidence in the local industry is that the Middle East and Africa market is predicted to grow by around 49% over the next five years (from 1.6-million to 2.37-million units) – or just below the world average, which is skewed by the 137% increase predicted for Eastern Europe and 73% for North America. China – which was the only market to grow in 2009 – is expected to continue driving a 48% growth in the Asia- Pacific market.