Abstract
The global automotive industry is experiencing a great transformation. The dynamic of global automobile demand is shifting from the mature economies of the West to the emerging economies. The phenomenon is recent. In 2005, around 20 million vehicles units1 were sold in Asia, Oceania and the Middle East,2 as much as in North America,3 and more than in Europe.4 That itself was already a milestone, because North America and Europe used to outrageously dominate the global market with more than 70% of global vehicle sales until the end of the 1990s. In 2013, Asia sold 40 million new vehicles, more than twice the sales in North America (18.7 million) and Europe (14 million). It means that Europe and North America now account for only 43% of global sales – less than Asia (47%).5 This is another spectacular illustration of the shift of wealth towards Asia and the advent of a multi-polar world. Of course, much of the shift owes to China rise. The Chinese automobile market is now the biggest in the world. But if we exclude China, Asia still has a market of more than 18 million units, the same size as the North American market in 2013, and four million more than the European market. And if we also exclude Japan, Asia still enjoys vehicles sales of around 13 million units, about the same size as the European market. This is because many economies have emerged and now count as an important middle class that buys automobiles.
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Reference
Ali, S. & U. B. Dadush (2012) In Search of the Global Middle Class: A New Index. Washington, DC: Carnegie Endowment for International Peace.
Chamon, M., P. Mauro & Y. Okawa (2008) “Mass car ownership in the emerging market giants”. Economic Policy, 23, pp. 243–296.
Dadush, U. B. & S. Ali (2012) In Search of the Global Middle Class: A New Index The Carnegie Papers, International Economics, Washington, DC: Carnegie Endowment for International Peace.
Storchmann, K. (2005) “Long-run gasoline demand for passenger cars: the role of income distribution”, Energy Economics, 27, pp. 25–58.
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© 2015 Bruno Jetin
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Jetin, B. (2015). Introduction. In: Jetin, B. (eds) Global Automobile Demand. Palgrave Macmillan, London. https://doi.org/10.1057/9781137516176_1
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DOI: https://doi.org/10.1057/9781137516176_1
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