Bosch believes car production has peaked and goes downJanuary 30, 2020
It is expected that global car sales in 2020 will fall below 90 million units per year. A further decline in sales will continue until 2025 – just then more affordable electric cars will hit the market.
The global automotive industry may already have peaked in terms of production – this is what one of the world’s leading engineering and technology companies claims. That’s exactly what Bosch brand CEO Volkmar Denner said.
Global car sales fell more than four percent last year compared to 2018 to 90.3 million units, according to analysts at LMC Automotive. For comparison, in 2018, global deliveries of new cars amounted to 94.4 million, and by the end of 2017, this number was equal to 95.2 million. According to preliminary forecasts, production is expected to decline for the third year in a row – in 2020, 2.6 percent is expected to fall to a total of 89 million units.
“It is possible that we have overcome the peak of automobile production,” commented Bosch CEO Volkmar Denner recently.
Mr. Denner also believes that an increase in production and sales should not be expected until 2025, when the next generation of more affordable electric vehicles should appear. In general, this year the global market will shrink by about 10 million units compared to 2017.
The current downturn in the automotive industry means Bosch will have to cut large numbers of jobs due to a 44 percent drop in annual operating profit. However, switching to electric cars can create long-term opportunities, Denner said, but at the same time it will affect the number of jobs in the near future.
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