Auto Export Demand Strong
Auto exports from Europe and Asia are surging as the U.S. and other countries continue to grant subsidies on electric vehicles and dealers replenish inventories. The Wall Street Journal reports the increase shows the automotive sector is bucking a global trade slowdown.
German manufacturers exported around 2.6 million new passenger cars in the 10 months through October, up 22% year over year, and South Korean and Japanese auto exports have accelerated, in part thanks to U.S. tax breaks for electric cars.
China earlier this year became the world’s biggest auto exporter, with outbound shipments up 71% in the third quarter compared with average monthly exports in 2021. The need to refill lots that were left with sparse inventories is one factor propelling global exports.
This also follows the news that Toyota broke its global sales record in August.
Nucleus notes that automotive industry demand is often an indicator and precursor to upticks in demand generally.