The firm’s data shows that the overall global market eased a little further in February to a seasonally adjusted annualised rate of sales of 87.9mn units/year; year-on-year growth stood at just 0.6%, the slowest rate of growth since mid-2013.

It added that West European registrations continued to improve, with solid performances also coming from the US and China. However, Eastern Europe and Mercosur look somewhat weaker than levels reported a year ago.

For North America, Light Vehicle sales registered a 5% increase in February. Despite adverse weather, falling incentives, and the labour strike affecting overall imports on the west coast, consumers are still drawn into showrooms and making vehicle purchases due to both a strengthening US economy and longer loan durations combined with low interest rates.

And Canadian Light Vehicle sales achieved the highest February since 2008 at approximately 109,000 units, with a selling rate of 1.8 mn units/year.

Registrations in Western Europe also continued to pick up last month, climbing nearly 8%. All major markets reported gains, with Spain and Italy putting in noteworthy performances. The recent result reflects improving consumer confidence, and supports our forecast of another solid increase (from a relatively low base) in Light Vehicle sales in the region this year.

Yet in Eastern Europe registrations were down by a fifth. The collapse of the Russian market accounts for the region’s result. A selling rate of 1.7 mn units/year is unlikely to be a low point for the Russian market as price increases continue and some models are removed from the market all together, with general economic weakness applying further downward pressure.

The Chinese market sustained strong momentum through February. According to preliminary data, the holiday-adjusted February selling rate was 24.6 mn units/year, down marginally from a slightly downwardly revised 24.8 mn units/year in January. The holiday mood of the Chinese New Year apparently contributed to robust Passenger Vehicle sales (PV, up nearly 10% year-on- year), while the slowing economy continued to depress Light Commercial Vehicle sales (LCV, down 25% year-on-year).

Looking ahead, LMCA added that China’s sales outlook is increasingly uncertain, as the government has set a lower GDP growth target of “around 7%” this year, while it has continued monetary easing to combat the deflationary trend. In contrast to upbeat consumer confidence, the official manufacturing PMI has fallen into negative territory, suggesting that the divergence between the PV and LCV sales trends will continue.

In Japan, the February selling rate was a relatively strong 5 mn units/year, little changed from January. It is possible that the price-sensitive Japanese consumers are rushing to dealerships before the scheduled Mini Vehicle tax hike in April 2015, although the tax hike is expected to be very small — Mini Vehicles account for 40% of Japan’s total Light Vehicles.

In South Korea, the selling rate averaged a robust 1.7 mn units/year in the first two months of this year. Such a strong pace is, however, unlikely to be sustained, due to the still depressed manufacturing and export sectors, slowing employment growth, and high household debt.

Within South America, in Brazil, the selling rate fell sharply to 2.7 mn units/year in February, disrupted by the Carnival holidays. The government’s recent decision to raise the prices of fuel, food, bus fares etc, as well as interest rates, has also dampened consumer confidence and spending on vehicles.

Defying the deteriorating economy, the selling rate in Argentina picked up to 567,000 units/year in February after a plunge in January. LMCA added that the depressed situation of the market, however, has generally not changed at all, with the worsening job market and rampant inflation undermining consumers’ purchasing power.