The slump in car sales in the previous years due to global-wide economic slowdown has resulted in a gloomy market climate for a while. However, good news has pervaded the industry currently with a revitalised auto sales.
This year, US auto sales maintain its growth curve with June sales posting significant increase by 1.2% to 1.4 million, pushing the annualised selling rate to 16.98 million, citing a report from research firm, Autodata Corp.
Europe’s auto sales also increased. According to the European Automobile Manufacturers’ Association (ACEA), registrations climbed to 1.23 million vehicles from 1.18 million a year ago.
In Asia, car sales have also picked up. The Philippines reported positive trends, with 19, 622 units sold in June, a 38% increase from 14,240 units sold a year ago, according to data from Chamber of Automotive Manufacturers of the Philippines (CAMPI). The data exclude sales of non-affiliated brands and smaller manufacturers group, which comprises 15% of the total market.
India’s car market sales are also up. In June, total car sales climbed 15% year-on-year to 160,232 units, according to data from the Society of Indian Automobile Manufacturers (SIAM). Sales in the three months ended June gained 2.2% to 444,242 cars, both over year earlier periods.
Truck and bus sales, recovering from a 9% decline from a year earlier, have grown in the past quarter.
The increasing auto sales are benefiting auto manufacturers and retailers as well as makers of car parts and tyres.
On this note, Singapore-headquartered Giti Tire expands its tyre production with a new location in the US. The firm is building a U$560 million US tyre plant on a 1,100-acre site in Chester County in South Carolina state.
The new plant will incorporate cutting-edge automation, using equipment sourced from the US, Europe and Asia.
GITI says that the South Carolina factory and the distribution/logistics centre in South Carolina to enable the firm to accelerate its development of products designed for its US customers.
Giti generated nearly US$640 million or 17% of its US$3.8 billion in fiscal 2013 sales from business in North America, where it is marketed under the GT Radial, Primewell (exclusive to Firestone Auto Care Centres), Dextero (exclusive to Wal-Mart Corp.) and Runway brands.
Indonesian tyre maker Tire maker PT Multistrada Arah Sarana (MASA) is prospecting to expand its production capacity to increase its domestic market share by 2% by 2016 or 2018. Multistrada’s current market share in Indonesia is around 13%.
The firm produces 10 million car tyres and 6 million motorcycle tyres, under brands that include Achilles, Corsa and Strada; It expects to increase its overall production capacity to around 17 to 18 million tyres per year.
This year, Multistrada projects selling 8.4 million car tyes, and boost sales by around 20% to 10 million car tyres next year. Sales of motorcycle tires are expected to reach 4 million this year.
Exports, which account for 69% of its overall net sales, dropped 16% to US$50.5 million in the first three months of this year against US$60 million during the same period in 2013. Meanwhile, the firm derives 31% of its sales from its domestic market.