J.D. Power sees world auto market up 6%

Toyota opened its first new factory in Japan in nearly two decades Wednesday. The world's largest automaker's sales increased 19 percent in China last year, while US sales remained flat and Europe sales dropped 11 percent. Photo: CFP

Global auto sales will increase 6 percent in 2011 to a record 76.5 million new light vehicles, J.D. Power and Associates said Tuesday.

Auto sales in the so-called emerging economies made up more than half of global sales for the first time in 2010, said J.D. Power, which tracks auto sales.

In 2010, sales reached a record 72 million, beating the previous mark of 70 million set in 2007 before a global recession cut into auto sales, California-based J.D. Power said.

"Overall growth in the world economy has been supporting further recovery in auto sales," said John Humphrey, senior vice president of automotive operations at J.D. Power in a statement. "We're seeing signals of stability and increased consumer demand for new vehicles as economic optimism increases."

J.D. Power Director of Global Forecasting Jeff Schuster said the cooling of auto sales growth in emerging markets in 2011 is the major reason global growth is only 6 percent this year, compared with forecast growth of 11 percent in 2012, when Western Europe and North America are expected to rebound.

After a drop of 2 percent in sales in 2011, Europe will recover to show strong growth in 2012, which will help boost global auto sales to 85 million, Schuster said in a telephone interview.

The world's auto market is seen climbing to 90 million to 91 million in 2013 and surpassing 100 million new vehicle sales in 2015, said Schuster.

China, the No. 1 auto market, will sell 6 million more vehicles in 2011 than No. 2 US, J.D. Power said.

China is forecast to sell 19 million new vehicles in 2011 for a growth rate of 11 percent - down from 33 percent growth in 2009 and 48 percent in 2008. Chinese sales rose from 8.8 million in 2008 to 17.2 million in 2010, J.D. Power said.

General Motors Co Chief Executive Daniel Akerson said in Beijing on Tuesday: "China is a unique market sitting in what I think is the highest growth area in the world for the next 10, 20, 30 years."