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North American Automotive Production Markets Estimated to Reach to 25.70 Million Units by 2018
U.S. To Remain the Dominant Market
The U.S. is home to some of the most technologically advanced automobile Original Equipment Manufacturers (OEMs) such as Fiat Chrysler Automobiles, General Motors, and Ford Motors. Vehicles produced in the country are among the first to receive new technological innovations in the automotive industry. Vehicle production in the U.S. is second only to China in the entire world, and it is still growing at a significant rate, higher than Mexico and Canada. The major restraint for the U.S. auto manufacturing industry is the high set-up cost and process. The market in the U.S. is highly matured which has led to a rise in the cost of setting up new plants. Another reason is the changing government mandates regarding emission norms for the vehicles as well as the manufacturing industry. However, other factors like easy availability of skilled labor and advanced technology provide a positive outlook for the industry.
Light-Duty Commercial Vehicles (Lcvs): Fastest Growing Automobile Segment
The U.S. which is the biggest LCV market not only in the North American region but also across the globe, has propelled the North American region to the top position when it comes to manufacturing of light-duty commercial vehicles (LCVs) across the globe. The LCV industry in North America is growing at a much faster rate than its passenger car counterpart and this trend is expected to continue over the next five years as well. The number of LCVs produced in U.S is almost twice, as compared to Mexico and Canada combined. The high growth in this segment can be attributed to the rising small to medium scale construction and maintenance business prevailing in the region.
Other Fuel Types: Opportunistic Market
The other fuel types, which consists of natural gas vehicles (NGVs), bio-ethanol fuel, electric vehicles, etc., are fuel types for the future automobile industry. Most OEMs are investing and doing constant research in this segment. The major driving force behind this is the growing concern over environment problems caused by fossil fuels. Governments in North American countries have passed strict regulations mandating tighter emission norms. Therefore, automobile manufacturers are investing more into electric vehicle technologies to increase fuel efficiency and lower emissions from their vehicles. The market for electric vehicles has been growing at a much faster rate than that for traditional Internal Combustion Engine (ICE) powered LCVs and passenger cars in the North American region, and this growth is a sign of the emerging opportunities presented by the Electronic Vehicles market in this region.
North American Automotive Production Market Outlook to 2018 by Vehicle Type (Passenger Cars, LCV, and HCV), Fuel Type (Gasoline, Diesel, and Others) and Key Country Level Markets (U.S., Canada, and Mexico)
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