German carmakers will concentrate on the United States for increasing local production in 2014 and 2015, taking advantage of resurging demand in the country while the European market continues to struggle, according to PricewaterhouseCoopers. PwC said that the number of passenger cars build by German carmaker in the US may surged by nearly 12 percent this year to over 700,000 vehicles -- the highest growth rate projected for them in any world market.
PwC added that their US output could even grow 30 percent in 2015. "The dynamics of growth [at German manufacturers] have returned to the U.S.," said Felix Kuhnert, a regional head at PwC's automotive division. Daimler's Mercedes-Benz division will start building the new C-class sedan at its Alabama site in the US this year.
Volkswagen's Audi brand will also shift output of the Q5 SUV from Germany to a new plant in San Jose Chiapa, Mexico, starting 2016, PwC expects German carmakers to grow their production in China by only 3 percent this year, from around 20 percent or 600,000 vehicles in 2012. According to PwC, the auto industry’s global production could surge 6 percent to 87.4 million passenger cars and light vehicles this year.