Latest LMCA date shows that total sales were up 2.0 to 8,545,883 units while the seasonally adjusted annualised rate of sales increased to 88.9 million units/year.

However, the firm added that its full-year expectation for 2015 is slightly down, at a little over 89 million units.

It also said that while vehicle demand in Western Europe, the US and China continued to show strength, a collapse in Russia and continued weakness in Brazil held growth back.

US light vehicle sales only edged upwards, in year-on-year terms, in March but the solid 17.0 million units/year selling rate points to an ongoing strong performance. Growth in the whole first quarter was almost entirely driven by light trucks.

Vehicle demand in Canada was solid in March, improving on last year’s strong result – though LMCA does not expect further growth in 2015 as a whole.

The West European recovery picked up speed in March with a year-on-year gain of over 10%. The selling rate hit its highest level in four years at 14.7 million units/year. While the UK market stood out, sales in Spain, France and Germany also showed solid upward movement.

East European demand, in sharp contrast, continued its nosedive in March, though almost all of the decline can be attributed to the collapsing Russian market: the selling rate there dropped to just 1.6 million units/year (compare this with an already declining total for 2014, when sales were 2.5 million units). While LMCA expects continued stability in other East European markets, the outlook for Russia remains weak over the coming year, with no recovery from recent lows anticipated.

In China, the March selling rate was 24.7 million units/year, no change from the holiday-adjusted February. Looking closely, however, the divergence between Passenger Vehicles (PV) and Light Commercial Vehicles (LCV) continued, with PV sales increasing by 12% (year-on-year) and LCV sales declining by 18% in March. The slowing economy and the stricter emission standards, which kicked in at the beginning of this year, continue to undermine LCV sales.

The economy is showing signs of further slowdown. The rising risk of deflation, the sharp deceleration of the once booming property sector, and the uncertain global outlook are expected to force the government to step up its monetary and fiscal easing measures. If so, sales could pick up their pace in the coming months.

In Japan, the selling rate picked up to 5.2 million units/year in March ahead of tax changes in April. The annual Mini Vehicle tax has been raised and the rules to qualify for the “eco-car tax exemptions” have been tightened. As such, sales are expected to lose momentum again in the coming months.

The South Korean market continues to surprise on the upside, with the selling rate exceeding a robust 1.7 million units/year in March. Falling inflation, record-low interest rates, and a strong local currency are supporting consumers’ purchasing power. However, a sluggish economy and a slowing job market are concerns.

In Brazil, the selling rate increased by nearly 9% in March, compared to a holiday-distorted weak February. Yet, the market is continuing a general downward trend along with a deteriorating economy. A looming recession, soaring inflation and interest rates, and already high household debt are expected to undermine sales during the rest of this year.

In Argentina, the March selling rate of 540,000 units/year was little changed from February. The sales outlook remains bleak, with falling real wages and deteriorating job prospects making consumers very cautious. However, if the government manages to increase its spending ahead of the October presidential election, that may help boost sales in the coming months.