Latest data from LMC Automotive shows that global sales in October were up 5.1% to 7,623,667 units while the selling rate picked up to an estimated 92 million units/year, one of the best readings on record.

The month brought another historically high month in the US Light Vehicle market with a selling rate topping 18 million units/year again and sales up 13.7% to 1,453,674 units. LMCA noted that consumer fundamentals continue to improve, implying solid support for vehicle demand, though sustainability of continued strong growth is in question.

Meanwhile Canadian light vehicle sales remain on target for a new record in 2015, after another strong showing in October.

In Europe, the rate of growth cooled in Western Europe as the boom in the UK looks to be finally coming to a halt, though no major scaling back is expected there. But the slowdown in growth was not just concentrated in the UK as gains in sales in both France and Germany eased. From a selling rate perspective, at a 14.7 mn units/year level, the market remains in a relatively solid position and sales were up 2.9% for the month.

In contrast, the continued year-on-year decline in Russia dominates the picture in Eastern Europe (sales down 21.2%) and LMCA said this is unlikely to change quickly, though it is clear that the market has found the bottom – the selling rate has hovered at around 1.5 mn units/year since April. Some cooling in other Central and East European countries, notably Turkey and the Czech Republic, was also evident.

In China, consumers responded to the temporary purchase tax cut positively. According to preliminary data, the October selling rate spiked to a record high of 26.8 mn units/year, up nearly 14% from a lacklustre September while sales were up 12.9%. Passenger vehicles accounted for most of the gains, as the tax cut is only applied to vehicles with engine size 1.6 litres or below.

LMCA added that sales are expected to remain buoyant through the end of 2016 when the tax cut expires. The overall economy, however, continues to slow, with investment and exports decelerating further. That raises a concern over job growth and the sustainability of robust vehicle sales after the end of the tax cut.

In Japan, the October selling rate was a solid 5 mn units/year but, on a year-on-year basis, sales continued to fall (down 4.0%) as the economy is once again on the verge of recession, and prices (excluding fuel) are rising. Inexpensive Mini Vehicles led the decline.

In South Korea, the temporary consumption tax cut boosted the October selling rate to a record high of 1.9 mn units/year. The market is now expected to finish 2015 with the highest annual sales on record despite a relatively sluggish economy.

In Brazil, sales continued to weaken along with the deepening recession. The selling rate fell to 2.1 mn units/year in October, in the face of soaring inflation and rising unemployment. With the government struggling with fiscal reform efforts, the stagnation of the automotive market could become prolonged.

The Argentine market maintained relatively strong momentum, with the selling rate reaching 653,000 units/year in October. Robust government spending ahead of the presidential election helped boost sales, though the sustainability of the momentum is in question.