Global car sales grew at their slowest pace in 6 years in 2015. So far first quarter 2016 shows promising signs. Check out how this year will shape up and what automakers are doing to jazz up growth.
2.7% is how much IHS Automotive sees global car sales rising this year.
"US and Europe, moderate growth. China, growth coming off end of last year, consumption tax reduction. Russia and Brazil, very tough, expect to be tough for quite some time," said Mark Fields, CEO of Ford Moter Co.
The impact of diesel-gate is being felt more keenly in some regions.
"A lot of polemics, percentage in Europe going down. Consumers wary about future. This is very important for limiting CO2, global warming. We’ll see some decline for diesel, but will be one main tech for industry," said Carlos Ghosn, CEO of Nissan-Renault.
"Global brands after scandal still have large platforms volumes, also have bargain power at suppliers even after the crisis, but some of them ignore Chinese market will be beaten by the market," said Zhang Junyi, partner of Roland Berger.
One company definitely not ignoring the Chinese market is Daimler, which is rolling out lifestyle marketing for Mercedes-Benz at its biggest market.
Is this a bar in Beijing’s hippest part of town? This is actually the Mercedes Experience centre, which combines art, fashion, F&B, retail, and the thing is, it doesn’t sell cars.
To appeal to the younger set, and build brand image more effectively, this sort of marketing is catching on.
Zhang Junyi also said,"not directly boosting sales, brand image and other things, but in long term, off line and online are important to sales.This kind of selected brand and concept stores, will build image."
Meanwhile BMW is banking on more driver assistance and e-mobility.
"We just launched BMW connected, US launch, to roll out worldwide. Like your companion, what you prefer, gets better the more it gets to know you. Takes away hassle, fulfil your needs.
I think BMW group has been first one to build purpose EV, first on market, going very successful, i-brand has a lot of potential, only i3 and i8, a lot of numbers to fill," said Peter Schwarzenbauer, board member of BMW AG.
At the luxury end of the market, SUVs are helping to cushion the downside.
"We see worldwide suv segment still growing, porsche models macan cayenne. China? the same," said Oliver Blume, CEO of Porshe.
How China goes, so does the world car market. 2016 global growth may not seem exciting at 2.7%, but it would still be a record year -- barring any surprise speedbumps.
