The data shows that the market ended the year on a high note with a best-ever seasonally adjusted annualised rate of sales of 92 million units/year as a number of markets posted good year-end results.

Chinese sales led the way as the selling rate topped 25 million units/year but other markets such as the US, Western Europe and even Brazil fared well.

For Noth America, the light vehicle market finished the year at 16.5 million units, up 6% on 2013 with the final month of the year being especially strong: the selling rate hit 16.8 million units/year. Light Truck sales have been a strong driver of growth over the past year with Compact SUVs leading the charge.

Sales in Canada hit a new record last year with a total of 1.85 million units, also up 6% on the prior year – further rapid growth from this level is unlikely.

In Western Europe, the December result followed a pattern which has been familiar for much of 2014, with steady year-on-year growth led by strong demand in the UK. While the expansion should continue in 2015, economic warning signs abound and there is a risk that the recovery may stall.

In Central and Eastern Europe, the all-important Russian market posted a relatively solid (preliminary) result in December – a selling rate of over 2.7 million units/year – but this is likely to be temporary as buyers cleared dealers of their stocks in advance of imminent and significant price increases resulting from the sharp drop in the ruble. Meanwhile, Light Vehicle sales in Turkey also performed strongly, mostly recovering from the dip earlier in year. Notwithstanding the end-year strength in the region, full-year 2014 sales were down by nearly 8%.

In China, according to preliminary data, the market ended 2014 on a strong note, with the selling rate soaring to a record high of 25.6 million units/year, up 3.8% from an upwardly revised November. There is speculation, however, that the strong December deliveries simply added to the dealer-level inventory, which rose to 1.8 months in November from 1.5 months in October.

In 2014 as a whole, total light vehicle sales reached yet another historical high of 23.7 million units, up 8.3% from 2013. The performance was mixed, with passenger vehicle sales continuing to rise, while light commercial vehicle sales recorded a fourth consecutive year of decline.

In Japan, the selling rate surged to a robust 6.2 million units/year in December, the highest rate since January 2014 (before the April consumption tax hike). Winter bonuses among large corporations increased for the second successive year in 2014, which, along with the rising Tokyo stock market, helped boost sales.

In South Korea, automakers’ aggressive incentive campaigns helped boost the December selling rate to a 12-year high of 1.79 million units/year, an exceptionally strong rate that even the automakers do not expect to be sustainable. In 2014 as a whole, total Light Vehicle sales exceeded the 1.6 million units for the first time since 2002.

Brazil finished 2014 on a strong note, with the selling rate reaching 3.7 million units/year, boosted by the expiration of the IPI tax cuts at the end of the year. The tax breaks for vehicle purchases are, however, unlikely to be reintroduced under the new finance minister’s fiscal austerity plans. In 2014, total Light Vehicle sales declined for the second consecutive year.

Finally, in Argentina’s volatile market, the selling rate picked up in December, but on a year-over-year basis, sales continued to plunge along with a deteriorating economy. The market shrunk by nearly 30% in 2014 and is showing little sign of recovery.