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Car Companies Financial Performance 2016

When it comes to having the right barometer to define the economic health and growth of a country, there is no doubt that the automobile industry could be a great indicator. It is the fulcrum around which many other industries survive and grow.

Hence looking at the financial performance of reputed ca companies in 2016 would be a good indicator. There are many big players in the car market and having a look at the performance of the same would certainly help us find out as to where exactly the automobile market is headed in 2016. It will be a great way to find out how liberal or tight are the pockets of the consumers which will have an impact on the demand of cars and eventually it will positively or negatively impact the car companies performance.

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A Look At The Performance Of Major Markets Across The Globe

USA is perhaps driving the growth engine of car companies across the world. After many years, it has been able to post impressive growth and it looks that the growth for 2016 would be around 6% which on a high base is extremely commendable. This means that there is more money in the pockets of the average Americans and they are ready to spend it on new cars amongst other things. The same is the case with the European Union where the growth story has been very encouraging and robust. If things go well it is expected that 2016 will see the growth of car sales in EU to be around 9%. This, if and when it happens will be a great boost the economy of EU.

However the disappointment has come from the emerging markets like India, China, Russia and Brazil. Car sales in India is expected to remain by and large flat and China which was a big contributor will be growing in single digit (perhaps by 5%) compared to robust double digit growth in the previous year. Brazil and Russia were the worst hit where the sales are likely to drop by 30% and 50% respectively.

Hence on the whole, when one looks at authentic figures emanating from resources like CMC Markets there are reasons to believe that 2016 will be a mixed bag with green patches here and there and not so encouraging signs from many other countries and regions across the world. Here is a look at the performance of a few major car makers.

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General Motors(2016 estimates): The year 2015 was great for Ford and it reported annual sales of 9.9 million units of cars across the world and it was able to grow in all the focus markets including USA, European Union and the emerging markets of India and China. It did have problems in Russia and Brazil and this had more to do with the local economies than anything else. Ford is expected to build on this impressive performance and 2016 should also be on the same lines.

Toyota: It reported a consolidated worldwide sales of 8.6 million units during 2015-16 which was around 0.30 million units less compared to last year. The biggest contributor was without doubt Japan where around 2.06 million cars were sold. North America saw Toyota selling 2.83 million units which was around 0.1 million units more when compared to the previous year. Europe and Asia reported negative growth which eventually pulled down the overall growth across the world.

Hyundai: Hyundai reported a total sale of 4.96 million cars in 2015 around the world and its performance in 2016 is estimated to be the same. It has set itself a target of 5.01 million cars for 2016 because of sluggish demand from some of the major Asian markets like South Korea, China, India and also some emerging economies like Brazil and Russia. However this is likely to be made up by improved sales in absolute terms in countries like USA, European Union, Japan, Australia and some other countries like South Africa.

The above is a brief study about the worldwide car market in 2016 and it certainly will be able to give some basic outline about the direction in which the car making companies are headed as a whole. The final takeaway is that in spite of robust growth expectations from North America and the EU, emerging economies will be a big drag and hence the number may be flat when compared to 2015 across the world.

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