Global automotive market report 2018The automotive industry of Indonesia has become an important pillar of the country’s manufacturing sector as several of the world’s nicely-recognized car corporations have (re)opened manufacturing plants or expanded production capacity in Southeast Asia’s biggest economy. The US industry hit some thing of a plateau in 2018. Light car sales turned out at 17.3m units , much less than 1% greater than the previous year. That is the fourth successive year the industry has breached 17m units, so it’s operating at a organic ceiling, analysts say. The be concerned is that a huge provide of new vehicles over the previous handful of years could outcome in a sharp crash if anything damaging grabs headlines. Donald Trump’s corporate tax cuts have undoubtedly supported the efficiency of the US economy, but their influence will be diminishing just as interest rates have picked up. Political turmoil in Washington does not assist sentiment either. Though financial fundamentals in the US stay sturdy, a decline to the industry in 2019 appears likely.
At the identical time, carmakers will face much more fundamental strategic pressures as trade barriers rise and fall. For the most element, the trend is still towards trade liberalisation. Vietnam is due to sign a free of charge-trade agreement with the EU in 2018, for example, while Chile has just began negotiating one of its personal. Progress towards a Trans-Pacific Partnership (TPP) agreement continues, despite the US’s selection to pull out. Meanwhile, the member states of the Association of South-East Asian Nations (ASEAN) are planning to finalise talks on their Regional Complete Financial Partnership in 2018, integrating their economies much more closely than ever.
Elsewhere, a mixture of larger interest rates and political events are acting as a brake to emerging markets. Iran? The re-imposition of sanctions has brought …Read More