Global Auto Market Outlook

Global Auto Market Outlook

Analysts at LMC Automotive have recently provided data for vehicles sold in major global markets. Unfortunately, numbers drastically fell as sales declined to 90.3 million in 2019. It was, in truth, a tough year for carmakers all around the globe. The industry struggled everywhere. As a result, relative to sales in 2018, 2019 had a drastic fall of more than 4 million automobiles, 4.1 million to be more precise. 

The situation becomes more complicated if we compare this result with the same period in 2017. A couple of years ago, in 2017, carmakers sold 95.2 million cars. In fact, sales have kept falling by nearly 4% each year. The obvious question is whether it will be possible to improve the existing situation.

One of the main issues that have an effect on the sales decline is that people are actively looking for eco-friendly vehicles. The cars powered by the internal combustion engine are becoming old-fashioned.

The other aspect of the problem is that in a way, global car consumerism has reached its peak. Thus, it is only logical that the global demand for vehicles will begin to decline, and it will be impossible to stop this process.

Global Auto Industry and major markets

The auto industry is the second-largest consumer of steel and aluminum on the global economic level. Experts say that the car industry is not the only one suffering, and it may affect the global economy, as the car industry accounts for 6% of economic output and up to 8% of goods exports at the current time.

For example, China is the world’s largest market for vehicles. However, Trade war tariffs and the newly spread virus are making car sales worse, as they declined by 2.3 million relative to sales in 2018. Other companies in Europe are having a change of heart. Thus, the changes in their sales and production plans are based on their respective economic situations.

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