Car production reaches limit

Car production reaches limit

February 2, 2020 0 By autotimesnews

German analysts say the maximum is already passed

It is expected that global car sales in 2020 will fall below 90 million units and their output will begin to decline gradually.

In an interview with Autonews, the head of Bosch, Volkmar Denner, promised the global automotive industry a disappointing future: in his opinion, humanity no longer needs as many cars. Accordingly, their production volumes will gradually but steadily decline. According to analysts, in 2019 global sales of cars fell by 4% compared to 2018: 90.3 million units were sold compared to 94.4 million a year earlier. It is expected that this year the auto industry will continue to fall – to about 89 million cars, that is, at least 2.6%.

According to Denner, this process will last until 2025, when a new generation of electric vehicles will get on the conveyor. During this time, global car production will fall to 85 million units per year, which will negatively affect the economy, as concerns will have to systematically reduce jobs. However, the massive transition to electric cars may become a new stage in the development of the auto industry: lowering the cost of electric cars will stimulate people to transfer to them from traditional cars and force manufacturers to increase their output.