Global auto industry is in a viral shock

Мировой автопром пребывает в вирусном шоке

Coronavirus pandemic has brought problems in the automotive industry of the entire planet. Widely closed automobile Assembly plants, dealers of despair go in the online space, economists are trying to predict sales volumes, revising the original plans. How are they abroad?

France

New car sales in France in March this year fell more than 72% and can be reduced by 20% by the end of 2020. The reason – the outbreak of coronavirus, which continues to mow down the local market.

Due to the fact that France in mid-month is under strict blockade viral, all of a large number of companies specializing in the sale of machinery, closed door showrooms. In turn went on vacation all the local giants, thus trying to reduce the impact of the pandemic, COVID-19.

“This is a historic. We have never seen such a fall”, – said the representative of branch group of French automakers (CCFA), Francois Roudier. According to him, which leads urdupoint.com in March 2020 sales of new French cars dropped by 72.2% to 62 668 units, compared to March 2019.

Francois Roudier said that the first half of this year, based on estimates of both the French and foreign companies, the French market could fall by about 30%, leading to annual decrease by 20%. This means that in total the French will gain from 1.7 to 1.8 million new cars. The forecast is based on the assumption that the pandemic will cease, and normal car activities will be resumed in late April or early may. “If the virus is delayed, the prognosis may be even lower,” said Mr. Roudier.

United States

The sale of light vehicles in the United States in 2020 could range from 14.5 to 16.4 million units. According to experts statista.com, the auto industry will sell about 16.4 million cars. It’s the most optimistic scenario, when the virus that causes COVID-19, gone as quickly as it came.

If coronavirus crisis continues, the prospects for the overseas market will worsen: car sales in 2020 could fall to the level of 14.5 million units. For comparison: in 2019, motorists in the United States purchased approximately 17 million new cars and light trucks, down slightly from the record sales period 2015-2018 gg when sales totaled 17 million units.

In 2019, the average price of new light vehicle in the US was approximately 36 400 dollars is 50 to 60% of the average household income in America. Consumers are generally not shown much willingness to such a major family investment when the economy slows down.

In 2018, the average age of vehicles on American roads was 11.7 years. However, this figure was even higher for households with an income below $ 25,000 per year. It is reported that people living in such households operated their cars for 13 years already. The current economic situation of the sample in I-II quarters 2020 promises in this respect no positive changes.

Japan

“Sluggish sales can be attributed to the outbreak of coronavirus and the lingering effects of the hike in the consumption tax from 1 October last year”, – said the representatives of the Japanese automobile dealers Association.

Car dealers have registered a decline in the number of clients, because many Japanese refrained from going to work and on the streets amid rising concerns related to the spread of infection COVID-19.

Excluding minivans new car sales in Japan in February this year fell by 10.7% – to 268 302 units Sales of minivans with engine displacement up to 660 CC, fell 9.6% to 161 883 units. the drop in sales noted edition japantimes.co.jp, citing data from the largest automakers of Japan.

For example, in Mitsubishi Motors Corp fell by 24,5%, Nissan Motor Co. – 13.8%, sales of industry leader Toyota Motor Co. fell by 7%. Sales of new trucks and buses fell by 10.3% compared to the same period last year – up to 430 185 units, was the fifth consecutive decline in approvals.

The economy is faced with a strike, family or even worse than that which occurred in 2011, when it shrank 0.1% due to the powerful earthquake and tsunami in the Tohoku region, experts say the Japanese automobile dealers Association.

The lowering of the forecasts

Last week, Moody’s sharply downgraded the Outlook for global car sales in 2020 – with the projected decline of 2.5% to a much more dramatic drop of 14%. According to representatives of Moody’s, heaviest at the moment affected Western Europe with the fall of 21%, followed by USA with a fall of 15%, China 10%, Japan – 8%.

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