According to Harman International Industries Inc, the US audio systems manufacturer, Europe's automotive industry slump has 'bottomed out' and recovery can be forecasted for the current fiscal year. This is welcome news, as the European market accounts for a majority of the sales for the US based firm.

There are indications that the doldrums have lifted in the European car market. This comes after two of the largest car companies in the continent, namely Daimler and Volkswagen, had reported healthy profits in 2013's second quarter.

According to Harman International Industries CEO Dinesh Paliwal, "The rate of decline has slowed down and is close to zero- now. For the current fiscal year, we assume our planning for the European auto sector a flat to 1% decline from last year. We hope it will be zero to 1% plus." He spoke to Reuters at the sidelines of the largest consumer electronics trade show in Europe, the IFA, last Friday.