Carlos Gomez of Toronto-based Scotia Economics said the auto sales recovery that began slowly last spring will gain momentum in 2010. He said the momentum will be so strong that U.S. car sales could post upto double-digit gains. This prediction has come at a time when auto sales in US is at an all time low, and is not showing any significant improvement over several quarters.

All the three American auto makers are facing a turbulent time. GM and Chrysler were worst affected by the 2008-09 economic recession and they were subject to several structural changes including taking financial assistance from the government in return for more federal oversight. Ford Motor Co. was the only U.S. manufacturer that did not have to rely on Govt. funding, but however, are not in good shape either.

The recession forced Ford to sell two of its premier brand businesses, Land Rover and Jaguar. Indian automaker Tata Motors purchased both of them last year.

The new prediction from Mr. Gomez does not talk about US companies in particular. He also mentions that asian companies like Hyundai, Toyota and Honda too performed badly during the period but they are expected to perform better in 2010 than the US counter-parts. This is mainly due to their fuel efficient products.

Global Car Sales

Gomez also said China, India and Brazil will join the U.S. in a sales surge, which could set new records by 2011. China and India has already overtaken US in terms of Mobile Phone sales and are having strong economic development.

India and China are becoming attractive markets, and many MNC’s are moving in to take the opportunity. Korean Hyundai is the best performing foreign company in India, while Toyota and Honda take second and third spot. While Maruti Suzuki (a joint venture of Indian manufacturer Maruti and Japanese car maker Suzuki), Tata Motors and Mahindra are the top three Indian companies that jointly cover more than 50% of Indian Auto market.

China is too rich in home grown companies. Kia Motors is one of the best performing  cars over there. Japanese Car makers Honda, Toyota, and Hyundai are the foreign companies that performance well in the Chinese markets.

The entire report can be viewed at Global Auto Report