Global car sales will decline by the end of 2020 by 2.5%

Global car sales will decline by the end of 2020 by 2.5%

February 27, 2020 0 By autotimesnews

Credit rating agency Moody’s Investor Service on Wednesday reduced its forecast for global car sales for 2020, with China gaining the most influence as the outbreak of coronavirus intensifies.

The agency said it expects global car sales to fall by 2.5% in 2020, lower than its previous estimate of a decline of 0.9%. Moody’s maintained a “negative” outlook for the sector and announced that it expects global car sales to recover only slightly in 2021 with an increase of 1.5%. Currently, the agency suggests that sales of cars in China, the world’s largest market, will decrease by 2.9% in 2020 compared with previous estimates of 1% growth.

The China Automobile Manufacturers Association (CAAM) said Wednesday that it suggests a sharp drop in vehicle production and sales in China in February due to an outbreak of coronavirus. According to CAAM information released on Wednesday, car sales in China fell to 18.7% in January, which was worse than anticipated, marking the 19th consecutive month of declining sales in the industry.