Audi 2010 Annual Report Download - page 182

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The economic performance of Central and Eastern European countries is likely to gain increasing
momentum in 2011. Russia in particular will benefit from rising demand for raw materials and
achieve strong economic growth.
In the United States, economic growth should be slightly higher than in the previous year. Never-
theless, consumer spending is expected to deliver only little impetus for overall economic activity
due to the continuing tight state of the labor market and high levels of household debt.
The Audi Group estimates that in Latin America economic growth will be down on the previous
year in 2011. In international terms, however, the region’s economies continue to expand at
above-average rates.
The Audi Group believes economic growth in emerging Asian countries will remain dynamic in
2011. The Chinese economy is likely to expand by a similarly steep rate as in the previous year.
The Indian economy, too, will be a strong performer. By contrast, the Audi Group expects to see
a marked weakening of growth in the Japanese economy.
The Audi Group moreover expects that the global economy will remain buoyant in 2012. There is
likely to be continuing variation in economic vigor between individual regions.
The car industry
The Audi Group expects to see car markets globally put in a mixed performance in 2011. All sales
regions worldwide, with the exception of Western Europe, will register rising demand for new
vehicles. However, the pace of growth in Asian and Latin American markets will be slower. Over-
all, demand for automobiles worldwide will be bolstered by the upturn in the global economy
and will grow further.
The Audi Group estimates that in Germany the car market will gradually return to normal in 2011,
after experiencing major fluctuations in the previous two years as a result of the temporary
introduction of the government environment bonus. The Audi Group therefore expects the cur-
rent year to bring a moderate recovery compared with the low level of 2010.
On the other hand new car registrations elsewhere in Western Europe, but especially in major
markets such as the UK and France, will be down. Factors adversely affecting demand include the
expiry of government incentives and consumer reticence against the backdrop of the sovereign
debt crisis in certain EU countries.
The car market in Central and Eastern European countries will enjoy better fortunes in the current
year. In Russia in particular, the Audi Group expects the upward trend in car sales to continue.
The Audi Group estimates that demand for automobiles in the United States will continue to
recover in 2011, though the market’s development will remain muted especially because of high
fuel prices.
The Asia-Pacific region is expected to maintain its vigorous market growth in 2011, further ce-
menting its position as the world’s major sales region. Nevertheless, growth in China is expected
to weaken slightly from the previously high level. As well as tougher emission standards and
reduced state aid, further regulatory intervention by the central government and city authorities
is to be expected, damping sales mainly in the volume segment. Likewise in the Indian car market,
the rate of growth in 2011 will be slightly down on the previous year. On the other hand the
Audi Group estimates that there will be a substantial fall in the Japanese car market this year.
The Audi Group expects to see a further rise in global demand for cars in 2012. All sales regions
worldwide should see new vehicle registrations rise.