Increasing traffic worldwide could slow down auto sales according to a new study.
Traffic congestion in countries such as China, Brazil and Russia is increasing at such a rate that it’ll result in a drop of vehicles being driven globally. The study, conducted by IHS Automotive and Groupe Futuribles, projects that annual auto sales will be trimmed by 30-million vehicles by 2035, which could be trouble for automakers that are banking on those countries for sales growth.
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China, for example, is the focus of growth for many automakers with booming sales, though some cities are approaching the limit of vehicle registrations set by the Chinese government. In Beijing, the government has set a cap at 6-million vehicle registrations and already there are 5.4-million vehicles registered.
This year, worldwide auto sales are expected to hit 87.4-million vehicles, but traffic congestion could result in a global gridlock, dampening sales for years to come.
[Source: CNBC]
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