Global Auto Growth Set To Accelerate In 2017.
But Protectionism Clouds Prospects In NAFTA, Europe.
The global automotive market is set to grow at twice the 2016 rate next year led by emerging markets like Russia and Brazil, but a number of challenges include the possibility of an increasingly protectionist environment.
That’s the view of BMI Research, in a published report.
China will be an exception though, with its sales growth rate slowing.
The growth of protectionism is a worry.
“Some of the biggest events in 2016 will set the stage for key trends in 2017, including the U.K.’s vote to leave the European Union and Donald Trump’s victory in the U.S. presidential election. Both outcomes highlighted a shift towards populism and protectionist policies, which will have far-reaching implications for global trade,” BMI Research said.
The uncertainty surrounding trade between the U.K. and E.U., and the future of NAFTA under a Trump administration could cause automakers to stall their plans in both regions until more details are known.
“Therefore, it is possible that 2017 will be a year of lower investment flows, particularly in North America and Europe,” BMI Research said.
It took comfort from Nissan’s commitment to stay in Britain.
More automakers will reveal new electric vehicles in 2017. Clues will also emerge about the shape of the autonomous world, which is likely to develop along plans for “mobility” through ride-sharing and car-sharing.