Global car sales may plummet by 22% in 2020

IHS Markit lowered its global car sales forecast on Tuesday. It is expected that global car sales will drop 22% to 70.3 million units this year, of which U.S. sales fell 26.6% year-on-year to 12.5 million units.

U.S. sales will be the lowest level since sales of 11.6 million vehicles in 2010, when the automotive industry has just emerged from the Great Depression; this is also greater than the 12% decline in global sales predicted by IHS Markit in March for 2020.

Colin Couchman, Executive Director of Global Automotive Demand Forecasting at IHS Markit, said: “The unexpected and sudden nature of the epidemic is hitting the automotive industry seriously, and the global recovery prospects are full of unprecedented uncertainties. Interaction with large-scale global supply disruptions due to delayed or cancelled demand , The market prospect is unknown. ”

In the United States, many dealership stores have closed stores, but retailers can still sell vehicles online. Although it is much better than the mandatory full closure measures initially adopted in some states, online sales cannot compensate for the drop in store traffic.

IHS predicts that in Western and Central Europe, annual car sales will fall by 24.9% to 13.6 million. IHS said that according to local epidemic restrictions and guidelines, as well as various economic support and stimulus measures, the European market will experience a mixed recovery cycle.

As sales decline, car output will also decline. IHS predicts that due to the epidemic, global light vehicle production will drop by 21.2% this year, which is 18.8 million fewer than in 2019.

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