Comparison between global production and sales (2005-2017)
- Inovev has compiled global automotive production figures, and compared them to global auto sales figures since 2005. Logically, the production curve follows that of sales, but we observe that each year a new stock inflates OEM production figures in order to be able to respond to demand.
- Thus, the difference between the world car production achieved between 2005 and 2017 (1,032 million vehicles) and worldwide sales over the same period (1,018 million vehicles) is about 14 million vehicles, or one million per year over a period of 13 years, which is relatively negligible given that this figure represents on average 1% of annual world production over this period, whereas car manufacturers must necessarily create a stock equal to or greater than 10% of their production in order to be able to constantly meet demand.
- Thus, the difference between the initial stock in 2005 and the final stock in 2017 is 14 million vehicles, but we observe that the stock has declined sharply on two occasions: one in 2009 (following the financial crisis of 2008 which caused a fall in sales) and the other in 2014 (following a general destocking operation that may be linked to the first measures against the diesel engine). Note that in 2017, just before the introduction of the new WLTP standards, the increase in global stock was limited to 500,000 vehicles, which is two times less than the 13-year average.
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