The Russian Ministry of Industry now expects car sales to edge up by 6% over the next year, which is a sharp pull back from the 23% growth rate everyone predicted a few months ago. Considering signs that the auto industry is in trouble throughout the emerging world, this is surprising and somewhat disappointing news. And U.S. traders can actually get exposure to this story.
After another week of official indecision, European markets are taking comfort from lingering signs of strength in the U.S. economy while Asian stocks surge on the prospect of rising U.S. demand for their products. Car makers in particular are in focus.
In an aggressive bid to increase market share in Brazil’s booming car market, automaker Renault-Nissan says it will invest $1.8 billion in Latin America’s largest economy.
Trucks remain a huge business in emerging markets and German manufacturers such as Daimler are finding plenty of support and even growth.
Foreign cars are all over Russian roads, and once Renault finalizes its acquisition of local car maker Avtovaz, it will be the biggest player in the country.