Renault-Nissan chief Carlos Ghosn said that the decline in the European auto market has stopped and that it’s now expected to achieve some light growth. Ghosn told reporters at the Frankfurt Motor Show that Renault-Nissan agrees with the forecasts from market analysts that the three growth indicators (a buoyant used car market, an increase in the prices of used cars, and an expanding growing new car market) were in line.
Ghosn said that all of the numerous indicators show that the downtrend trend is at its end. He said that the company is presently at the third stage of recovery where new car sales are expected to increase once more. He also thinks that for the next two years, the car industry will stay at this phase and will post a 1 to 2% growth a year.
In the first half of 2013, the European car market declined by 7% more. However, it’s expected to recover to end the year with a 5% drop. Ghosn believes that the “worst is over” and that the figures will increase starting in 2014.
But then, Ghosn said that there won’t be a significant increase until consumer confidence is back and until the European governments show their support for growth. Ghosn named US, China, India and Russia as the markets that have the biggest immediate growth potential while he warned about the prospects in Japan, Brazil and Indonesia. [source: Autocar]