Manufacturers of automobiles will suffer a resounding drop in sales worldwide this year, according to a study by the consultancy IHS Markit, which has reduced its projections for practically all regions. Deliveries are likely to drop more than 12% from last year, to 78.8 million. The estimate published on Wednesday represents a reduction of 10 million units compared to what the firm anticipated in January.
“The global auto industry is expected to witness an unprecedented and almost instantaneous demand stagnation in 2020,” Colin Couchman, an IHS analyst, wrote in an email statement. “The risks are very skewed to the downside, especially on how low the market could go and on the evaluation of the recovery prospects.”
IHS reduced its previous estimates by 2.4 million cars and light trucks for the US, 2.3 million for China and 1.9 million for Europe.
A sector slowed by the coronavirus
The sector faces two major problems due to the impact of the coronavirus. On the one hand, the production chains have completely stopped, forcing brands to stop most of their factories in Europe, something that Volkswagen, Renault or PSA have been through. Some measures that have already hit Chinese plants and now extend to American ones. On the other, the blow of the pandemic in employment will reduce purchasing power to customers.
30% crash in Spain
If the focus is put on Spain, the MSI consultancy affirms that sales of passenger cars and SUVs in Spain will close this year with a volume of 883,000 units, which represents a decrease of 29.3% compared to 2019.
By channels, companies will bear the brunt of the coronavirus outbreak, with a decrease of almost 40%, to 154,213 units, while individuals will buy some 439,963 cars throughout the year, 26.3% less.