The firm is predicting unit sales of 88.6m units for the global light vehicle market in 2015, an increase of 2.4% over 2014, continuing an unbroken five-year run of sales recovery and growth from the low point set in the depth of the Great Recession in 2009. However, a slowdown is being signalled with just two of the high-potential BRIC markets likely to see increased sales this year.

China will lead the sector’s volume growth, though IHS expects the market to slow from 2014. The North American market will continue its upswing, though the pace differs by country.

IHS added that the size of the contraction of the Russian car market remains a significant wild card that will impact the European market throughout the year, according to the analysis, while other countries in the region continue to recover at a rate of 2.5 to 3%, helped by the European Central Bank’s (ECB) commitment to full-blown Quantitative Easing.

The company concluded that from a global perspective, the auto industry is now being faced with and will have to adjust to very large and widespread exchange rate movements, commodity and raw material price changes and, of course, the new low oil prices. It added: ‘The last two will be significant tailwinds for the auto sector, its margins and for most of the world consumers, but at the same time, their unpredictability will mean long-term business plans will likely change at a more cautious pace.’