The firm’s data for April shows that global light vehicle sales rose 3.3% last month to 7,223,657 compared to 6,992,096 for April 2013. LMCA said that US sales strengthened while Chinese demand was solid. These markets, added to by a steady recovery in Western Europe, helped offset weakening in Japan (tax change), Eastern Europe and a number of other emerging markets.

West European sales were up again in year-on-year terms in April, marking out the eighth consecutive monthly increase. The selling rate of 13.6 million units/year puts the market back on a level with that in early 2012, before the very weak performance of 2013. The slowly improving economic backdrop points to further steady gains this year.

However, the outlook is not so positive in Eastern Europe where the unstable situation in Ukraine is likely to lead to a setback in the region in 2014. While Russian Light Vehicle sales have not yet reported, preliminary reports imply a significant slowdown may be in evidence for much of this year.

Looking at the figures for China, LMCA said that advance data indicates that China’s market has maintained a robust pace, with the April selling rate reaching 23.2 million units/year, up 1.2% from a downwardly revised 23.0 million units/year in March. On the one hand, since major cities are announcing restrictions on vehicle purchases in order to curb air pollution, “panic buying” is spreading among China’s consumers and may continue to boost sales in the near term, according to the firm.

On the other hand, the medium-term sales outlook is becoming more uncertain owing to the pull-ahead effect of the “panic buying” and a slowing economy. Q1 GDP growth of 7.4% (YoY) was weaker than expected and the government has recently announced mini-stimulus measures to boost the economy.

Elsewhere within Asia, as expected, sales in Japan declined sharply in April, as the consumption tax has been raised for the first time in 17 years. Yet the April selling rate of 5.1 million units/year was much stronger than expected, supported by Mini Passenger Vehicle sales. A reduction in vehicle acquisition tax and dealerships’ aggressive incentives have helped mitigate the post-tax-hike drop in sales.

In South Korea, the central bank reported a sharp fall in consumer confidence in the wake of the tragic ferry accident. Nonetheless, the April selling rate reached a robust 1.7 million units/year, boosted by new model launches. Weak exports and the rising unemployment rate, however, suggest that such strong momentum will not be sustained.

For South America, in Brazil, sales rebounded strongly in April after a weak holiday-distorted March. Yet, sales remain weak, hampered by higher interest rates and rising household debt. Already high inflation is expected to rise further due to the severe drought in the country and a planned hike in utility tariffs. A weakening job market is another concern.

Finally, looking at Argentina, LMCA said that the peso and foreign reserves have stabilised somewhat, but the risk of a financial crisis has not abated. In the face of rampant inflation and falling real wages, sales plunged by 35% (on a year-on-year basis) for the second straight month in April, with no sign of improvement in sight.