COVID 19 Impact on Global Automobile Sector
Automobile Sector Experience A Significant Impact In 2020 Influenced by COVID-19 Pandemic
By: UnivDatos Market Insights (UMI)
The Automobile sector is directly or indirectly affected by the Republic of China for automobile parts and tyre imports. Due to the outbreak of COVID-19 in China, Many factories have shut down and while some have resumed partially, utilization remains low. So it is affecting the import and export of automobile parts, therefore, hampering the production.
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In Europe, new car registrations declined by 7.5% and 7.4% (YOY) during January and February. Overall sales, in the region, are also declined by 7%, mostly due to steeper declines in key countries like the UK (-5%), Germany (-6%), Italy (-20%) and Spain (-10%) – which together account for a majority of vehicles sold in Europe.
In the USA also Automobile sector is not deprived of the consequences of the pandemic. The big three automakers – GM, Ford, and FCA US have decided to idle their plants in North America. Toyota, Honda, Tesla, and Nissan suspended production in North America. According to a report by Counterpoint, the estimate sales decline in the USA is 6% during 2020 of automobile
The Indian Automobile industry is also adversely affected by Covid-19. It is estimated that there will be an overall revenue impact of at least $1.5 -2.0 billion per month across the industry. Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Mahindra & Mahindra Ltd (M&M), Tata Motors Ltd and Toyota Kirloskar India Pvt. Ltd sold a total of 111,600 vehicles in March, according to sales data published by these companies. The demand is severely hit as they wary of the fast-spreading coronavirus and the importance of maintaining social distancing, avoided automobile showrooms. In terms of passenger vehicle segment also most of the countries registered double-digit drops in car sales.
UnivDatos Market Insights (UMI)