- The automotive market is set to grow by +3.0% in 2018 compared to +3.1% in 2017 and to slow down to +1.9% in 2019, with new vehicle registrations expected to exceed 100mn units in 2019, worldwide.
- Medium-term prospects remain favorable, with annual sales to reach 110 million units by 2022 mainly driven by the demand in China and to a lesser extent India.
- However, for manufacturers and suppliers, transition to electric vehicle and protectionism are leading to greatly increased uncertainty and rising costs, notably inputs costs, relocation of production and upheaval of supply-chains.
- Some car makers will be forced to dedicate CAPEX to meeting short term challenges and therefore not be able to deploy the significant amounts required to take ad-vantage of opportunities stemming from the future of mobility.