Global car makers will face increasing credit risks in the coming years against the background of industry development of electric vehicles and slowdown of the Chinese economy. It is reported RIA Novosti with reference to a study by rating Agency Standard & Poor’s (s&P).
It is noted that in the current year, the Agency mostly upgraded the credit ratings of automakers, a number of those whose rating was lowered, turned out to be significantly less. This was facilitated by the position of the corporations, which grew sales and operating profit. The success of the global automotive industry in 2016, tied to low interest rates and low fuel prices in the US and Europe. In addition, the Chinese economy still maintains high growth rates.
But in the coming years the situation may change, analysts say S&P.
Sales growth in China may slow down to 1-2 percent next year in the absence of supporting the economy financial measures. In the next few years is to increase the economy of China more than 2-5 percent annually. This will inevitably impact on profit of the auto companies that are actively investing in China’s economy.
Another reason negatively affecting the development of the automotive industry, the growing number of electric vehicles. In this field, car manufacturers already actively jostle high-tech companies like Google.
According to the consulting firm LMC Automotive, global car market for the first nine months of 2016 grew by nearly 5 percent, to 68.7 million units. In September it sold 8.4 million new cars. Most car in September, bought in China (about 2.6 million units), followed by the United States and 1.4 million units. In Western Europe sales totaled 1.57 million new vehicles.
Russian car market decreased for the fourth consecutive year. In the first nine months, he sank 14 percent, to 1.21 million units.
