Mubasher: Moody's Investors Service (Moody's) has expected that the sales of global auto manufacturers will decrease amid the increasing number of coronavirus cases which has led to the disruption of automotive supply chains.
The outlook of Moody's on the automotive sector remained negative, according to a report released by the rating agency on Wednesday.
Commenting on the sales drop, the Moody's senior vice president, Falk Frey, said: "Global vehicle sales will decline 2.5% in 2020, narrowing from a 4.6% drop in 2019, but worsening from the 0.9% decline that we had previously projected for this year. Sales will rebound only modestly in 2021, with growth of 1.5%."
In this regard, Chinese auto sales will decline by 2.9% in 2020, when compared to the rating agency’s expectation of the 1% growth.
Meanwhile, the US sales will remain weak, while the car sales in Western Europe will retreat following their strong performance at the end of 2019.
On the other hand, Japan’s sales will grow with a 0.4% increase in light vehicle sales in 2020, following a 1.4% drop in 2019 caused by a rise in the country’s consumption tax and the production disruptions due to three major typhoons.