- Global light vehicle sales in June 2012 were up 11% year-over-year to over 80 million units annually, driven by strong sales in China and the US while Western Europe remained weak. - Chinese and US sales supported the strong global performance, while weakness remained in Western Europe and growth had bounced back in Brazil due to new government incentives. - The outlook for 2012 global sales remains around 80 million units, with expectations of around 14.5 million units in the US and continued weakness in Western Europe.

1. June 2012
Global Light Vehicle Sales
Summary
• Global light vehicle sales remained strong with the selling rate rising to 80.9 mn units/year –
the market was up 11% in year-on-year terms reflecting both strength in June this year and
also weakness in June 2011.
• Chinese and US sales supported the strong performance while weakness remains a feature in
Western Europe. Brazilian sales have bounced back, driven by a new government tax
incentive. A global market of a little under 80 mn units remains our core assumption for 2012.
Global Light Vehicle Sales
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80
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Millions
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2012
North America
• June’s U.S Light Vehicle sales rebounded from the weaker May results and finished with a 17.6% year-
over-year increase. First half 2012 total sales are up 13.4% with car sales outpacing the overall market
with a 15.7% gain as truck sales climbed 11.0%. Truck sales improved in June with the moderate gas
price reductions seen in recent weeks.
• The outlook for 2012 remains at 14.5 million light vehicles; replacement of aging vehicles and easing
credit conditions are two factors driving new vehicle sales despite other softening economic conditions
• Canada’s June 2012 sales were down 1.0% (selling day adjusted) with a 1.74 million selling rate
(compared to the 1.69 million last June).
Europe
• Overall, European sales were broadly flat (down just 1%) but this stability masks the underlying
weakness in Western Europe. A fall in the West was offset by gains in Central and Eastern Europe.
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2. • The outlook remains weak in Western Europe with unemployment on the rise and recessionary
conditions evident in a number of countries.
China
• The June selling rate was a strong 19.4 mn units/year, unchanged from May. OEMs increased wholesale
deliveries ahead of scheduled plant shutdowns for the summer. In Guangzhou, sales surged ahead of
the 30th June deadline when the city government started to restrict the number of the new vehicle
registrations. In addition, inventory is rising. This suggests that the underlying strength of the market
may not be as strong as wholesale data currently indicates.
• Despite these concerns, we have decided to keep our forecast unchanged. With the economy slowing
sharply, the new government leaders, who take office in October, are likely to launch stimulus projects.
In addition, the local auto industry expects that the government will soon announce a subsidy program
for vehicle purchases in rural areas. If so, that should boost sales in the second half of this year.
Other Asia
• In Japan, the consumption tax (the sales tax) is now expected to be raised from the current 5% to 8% in
April 2014 and to 10% in October 2015.
• In Thailand, the selling rate soared to 1.3 mn units/year in May (June data is not yet available) on the
back of a strong production recovery from last year’s severe floods.
• In Indonesia, the selling rate increased to 1.1 mn units/year in May. Effective June, the minimum down
payment of passenger vehicles has been raised to 30% of the vehicle value from the original 15%.
South America
• In Brazil, the selling rate soared to 3.9 mn units/year (estimated) in June, as the temporary IPI tax cut
kicked in at the end of May. Inflation is falling and the central bank has continued to cut the benchmark
interest rate to a record low.
• In Argentina, the selling rate picked up in June, but in general remained weak on the back of rampant
inflation, a weakening peso, and a slowing economy.
Global Light Vehicle Sales
Sales (u nits) Selling rate (Units/year)
Jun Jun Percent Year to date Year to d ate Percent Jun Year to date Year Percent
2012 2011 change 2012 2011 change 2012 2012 20 11 change
WORLD 7,033,016 6,345,4 95 10. 8% 40,39 8,202 37,897,506 6.6% 80,86 9,449 79,952,853 7 5,483,563 5.9%
USA 1,282,981 1,050,8 31 2 2.1% 7,25 7,514 6,319,105 14.9 % 14,09 1,708 14,290,443 1 2,748,374 12.1%
CANADA 169,459 164,7 67 2.8% 86 4,851 805,721 7.3 % 1,73 5,086 1,707,534 1,582,660 7.9%
WESTERN EUROPE 1,296,548 1,337,9 98 -3.1% 7,18 0,989 7,792,190 -7.8 % 13,82 5,078 13,769,989 1 4,369,637 -4.2%
EASTERN EUROP E 457,401 434,5 22 5.3% 2,38 0,180 2,235,948 6.5 % 4,93 3,192 4,816,521 4,709,641 2.3%
JAPAN 497,762 344,4 39 4 4.5% 2,89 9,947 1,890,407 53.4 % 5,77 9,945 5,732,299 4,148,904 38.2%
KOREA 121,553 134,6 27 -9.7% 72 8,855 771,378 -5.5 % 1,42 9,468 1,493,724 1,541,403 -3.1%
CHIN A 1,570,763 1,401,4 68 1 2.1% 9,51 3,784 8,966,735 6.1 % 19,35 3,208 18,920,908 1 7,999,585 5.1%
BRAZIL / ARGENTI NA 415,317 365,2 07 1 3.7% 2,01 2,534 2,096,702 -4.0 % 4,76 3,163 4,121,436 4,375,987 -5.8%
OTHER 1,221,232 1,111,6 36 9.9% 7,55 9,548 7,019,320 7.7 % 14,95 8,602 15,099,999 1 4,007,372 7.8%
Notes: Eastern Europe includ es Turkey.
China data includes es timate of light vehicle imports, and excludes heavy vehicles.
Late reporting countries and es timates are included in "Other".
The percentage ch ange in the final column compares the average selling rate in the year-to-date with the last full year.
16 July 2012
LMC Automotive
www.lmc-auto.com
Oxford ♦ Detroit ♦ Frankfurt ♦ Bangkok ♦ Shanghai