Global auto sales forecast cut by 2.5pc on weak demand and disruptions in the automotive supply chain according to Moody’s Investor Service.

 

Auto unit sales are likely to fall by 2.5pc in 2020, revised from previously anticipated 0.9pc drop this year. Sales are likely to rebound in 2021, with a growth of 1.5pc. The firm’s outlook on the auto sector remains negative. 

 

The new forecast comes in the wake of spread of coronavirus which has hampered the supply chain of automotive parts globally. Production halts at China factories led to global shortage of auto parts. 

 

Vehicle sales are likely to drop to 88mn from 90.3mn overall, according to Moody’s on stricter emission regulations, weak auto demand and Covid-19 epidemic. The same report also forecasts Indian car sales to offset in 2020 with auto sales relatively flat after falling by 11.8pc in 2019. Sales dropped amid global economic slowdown. 

 

Indian auto sales are likely to increase by a marginal 0.5pc in 2020 on stimulus measures like discounts on BS-VI vehicles. 

 

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