COVID-19 and its Impact on the Automotive Sector
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COVID 19 Impact on Automotive Market Overview
This is the 41st edition of our regular Covid-19 reports covering the automotive sector. It covers a review of the global light vehicle market in 2021 and GlobalData’s current forecast for 2022. Information is as of May 2022.
Impact of COVID-19 on Sales in the Automotive Sector
March’s sales result was in keeping with the mounting headwinds that have been observed and is not helped by the comparison with a relatively strong base. The steepest fall in the selling rate was seen in Europe. Here supplies constrained sales in the UK market’s strongest month and the Russia-Ukraine conflict severely curtailed sales in the two markets.
North America was also weak, with market weakness dominated by ongoing supply issues. Asia was more resilient, with China’s market holding up reasonably well. However, lockdowns in Shanghai due to increasing COVID rates threaten that resilience and will also have economic implications for China and the rest of the world given the city’s role as a trade and economic hub.
Pressures are mounting in automotive markets. Supply constraints are ongoing and further complicated by the Russia-Ukraine conflict limiting supplies of vital components. Aside from the terrible human cost, the conflict threatens wider macroeconomic contagion. The downside risk of mounting inflation proving to be more than transitory looks like it will come to pass thanks to the oil price shock and commodity price pressures due to the Russia-Ukraine conflict.
Latent demand, which had underpinned prior hopes of recovery, could evaporate as a by-product of the Russia-Ukraine conflict. The oil price shock and mounting raw material prices add to inflationary pressures. To counter, tighter monetary policy is evident in much of the world and will put a further squeeze on new vehicle demand.
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Decision-makers are faced with tough choices regarding COVID-19, but an explosion of conflicting information and views on what to do. It is more important than ever to separate fact from fiction, the subjective from the objective, and use trusted, timely, and actionable data and insights.
Reasons to Buy
This report has been extracted from GlobaData’s regularly updated online Automotive Intelligence Center. Containing content, tools and services not found in this report, GlobalData’s AIC offers a cost-effective multi-user car market research solution.
Table of Contents
Sales results and outlook
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