Tuesday, March 1, 2016
The passenger car market will expand by 2.7% in 2016, according to private sector estimates, with growth evenly spread between the BRICS, Europe and the United States. The industry will focus on three transformations: the push into emerging markets (EMs), exploiting the potential of data and connectivity and managing the regulatory drive towards cleaner fuels.
- Diesel will remain a viable fuel in European markets.
- However, tougher testing and lower filtering margins will strengthen the case for further hybridisation of new models.
- The limited response from European regulators risks diminishing the incentives for domestic manufacturers to make changes early.
- Volume manufacturers are squeezed between low-cost manufacturers and the premium brands when it comes to connectivity.