Abu Dhabi, UAEThursday 2 July 2020

Car sales forecast lowered by 10 million due to Covid-19

IHS Markit's global forecast for deliveries downgraded to 78.8 million, from 88.8 million in January

New cars made by Ford Motors sit in a storage area at the Port of Cologne in Germany. Car sales are set to fall by 12 per cent this year, according to IHS Markit. Bloomberg
New cars made by Ford Motors sit in a storage area at the Port of Cologne in Germany. Car sales are set to fall by 12 per cent this year, according to IHS Markit. Bloomberg

Car makers are poised for a precipitous drop in worldwide sales this year, according to a prominent forecaster which has slashed its projections for virtually all regions.

Deliveries probably will plunge more than 12 per cent from last year to 78.8 million, according to IHS Markit. The estimate released on Wednesday is down 10 million units from the research company's expectations in January.

“The global auto industry is expected to witness an unprecedented and almost instant stalling of demand in 2020,” Colin Couchman, an IHS analyst, said in an emailed statement. “Risks are heavily skewed to downside, especially how low the market could go and for assessing recovery prospects.”

IHS cut its previous estimates by 2.4 million cars and light trucks for the US, by 2.3 million for China and 1.9 million for Europe.

Updated: March 25, 2020 08:02 PM

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