Sales Forecasting of Global Automobiles Trends using Arima Model

Automobile manufacturers are subject to the demands of a vast international pool of customers. Economic conditions affect overall industry sales. Today, the automobile sector in India is aptly described as the next sunrise sector of the Indian economy. Trends of production, sales and exports have been analyzed in the present paper with reference to the Indian automobile sector. The sales of vehicles in countries like Europe, America, Africa, NAFTA countries, and India have been considered to forecast the future sales. Data for sales between the periods of 2005 to 2018 have been collected and analyzed using the ARIMA forecasting technique. Results depict that future trends in vehicle sales are likely to vary considerably across the developed countries and India. It is concluded that in Europe, America, Africa and NAFTA countries, vehicle sales are expected to be broadly flat. In India, vehicle sales are expected to continue to increase due to population increases as well as high income elasticity and rising income levels.