...Modest Global Demand Growth: Fitch Ratings expects global demand for new vehicles to increase between 1% and 3% in 2016. Higher demand should offset economic weakness in a few large emerging markets, the likely gradual hike in investments and capex, and a potential increased focus on shareholder-friendly activities. We have a stable outlook for the sector in the US, Europe, Japan, South Korea and China (see separate regional Outlook reports). Growth to Pick Up in China: We expect sales growth in China to resume at the mid-single- digit level in 2016 ¡ after having stagnated since 2Q15 ¡ supported by reduced taxes on certain vehicle purchases, recovering consumer confidence, and a low base effect. In particular, we expect strong demand in lower-tier cities to remain the major driver of sales growth. Slowing US, Declining Japan: Fitch expects US light vehicle sales to grow at a slower rate in 2016, rising just below 2% to 17.5 million units. The rate of US sales growth has slowed for the...
