However, the firm said that the remarkable 88 million units/year selling rate in December is not likely to be sustainable in early 2014, though it expects continued expansion for the year in total.

The firm’s latest report the US market softened slightly in December, with a selling rate of 15.3 million units, but still marked a full-year 2013 total of 15.6 million units, up 7.6% on 2012. Underlying fundamentals remain positive for 2014 though the rate of expansion is likely to slow.

Canadian Light Vehicle sales also contributed to the strong North American performance with a new record market of 1.74 million units, though the December result was somewhat weak.

West European Light Vehicle sales hit the strongest selling rate in two years in December as UK demand boosted the overall total – a temporary spike in the Netherlands also helped in this respect. LMCA expects the market to cool a little in early 2014 but continue to expect that a slow recovery will now emerge and a small increase in volume is expected this year.

Markets in Central and Eastern Europe remained stable in December while the December result in Russia signified a notable improvement – the selling rate hit 3 million units/year.

Advance data indicates that the Chinese market has ended 2013 on a strong note, with the selling rate soaring to a record-high of 24.8 million units/year in December. In 2013 as a whole, total Light Vehicle sales reached an impressive 21.9 million units, up 14% from 2012, accelerating from less than 7% growth in 2012.

Consumers continued to rush to buy cars, as an increasing number of major cities are imposing restrictions on vehicle sales in order to reduce air pollution and traffic congestion. That suggests that sales are being pulled ahead. Nonetheless, the market is expected to remain strong this year, boosted by rising demand in inland provinces.

In Japan, the selling rate surged to a 20-month high of 5.9 million units/year in December, as a purchasing rush ahead of the consumption tax hike in April continues. To mitigate the impact of the tax hike on vehicle sales, the government is planning to reduce the vehicle acquisition tax.

The South Korean market finished 2013 with sluggish sales. The December selling rate was a lacklustre 1.45 million units/year. In 2013, total light vehicle sales declined slightly for the second straight year.

In Brazil, 2013 ended on a weak note, with December registering a selling rate of 3.5 million units/year. In 2013 as a whole, total light vehicle sales fell by 1.7%, the first annual decline in at least a decade. The 2014 sales outlook is not so promising, with high inflation and interest rates continuing to constrain sales.

Argentina’s notoriously volatile market continues to surprise. The selling rate soared to a historical high of 1.1 million units/year in December after falling sharply in November. Yet such a robust rate is unlikely to be sustained in the face of rampant inflation and a looming financial crisis.