Tweet
Coronavirus leads to nosedive in global vehicle sales with lowest January registrations since 2012, says GlobalData

Coronavirus leads to nosedive in global vehicle sales with lowest January registrations since 2012, says GlobalData

04.03.2020: Global light vehicle sales figures from the first month of 2020 should make for alarming reading. Just 6.2 million were sold in January, - the lowest monthly figure since January 2012, which saw 5.9 million units sold, according to GlobalData, a leading d


Global light vehicle sales figures from the first month of 2020 should make for alarming reading. Just 6.2 million were sold in January, - the lowest monthly figure since January 2012, which saw 5.9 million units sold, according to GlobalData, a leading data and analytics company.



Driving the drop in sales was the emergence in December 2019 of the coronavirus (COVID-19) in Wuhan, China. The disease has spread rapidly and has already infected more than 80,000 people and caused at least 2,800 deaths worldwide.
 



To avoid becoming infected, consumers in China and other exposed regions have employed strict outbreak-control measures, with many barricading themselves at home until the danger subsides. This has created a knock-on effect for both vehicle sales and production, with dealerships devoid of customers and factories at a standstill with no one to operate them.



Mike Vousden, Automotive Analyst at GlobalData, comments
: “While the drop in January vehicle sales on a global scale is alarming, sinking 13.9% compared with the same month in 2019, it is positively disastrous in China itself. Sales in the world’s single largest vehicle market sank 33.1% compared with January 2019 to just 1.66 million units. Adding insult to injury is the fact that January 2019’s figure was already 8% down on the same month in 2018, following a decade-long period of strong increases.”



Anecdotal reports are already indicating that sales declines are likely to accelerate into February. Domestic sales are said to be down 96% in the first week of February compared with the same period one year earlier. Cui Dongshu, secretary general of the China Passenger Car Association, said: “There was barely anybody at car dealers in the first week of February as most people stayed at home.”



Many established automakers and suppliers have hinged their business plans on China in light of its previously reliable sales growth, especially as western markets begin to contract having reached peak ‘motorization’. This means China’s latest sales figures will be a significant cause for concern for these companies, potentially requiring them to scale back revenue and profit forecasts.



Vousden continues
: “The longer-term effects are difficult to quantify but it is likely that sales growth will continue to be stunted throughout the rest of 2020, even if the spread of COVID-19 can be contained. This is because many of the components that go into building vehicles all over the world are produced in China, in factories that are currently standing still because it is too risky for workers to return. The auto industry is poorly prepared for such supply chain shocks because many operations run on a ‘just-in-time’ basis, with very limited numbers of stockpiled parts.”



Already, companies such as Jaguar-Land Rover have confirmed they’ve had to resort to flying parts in from China to meet production demand. Others including Toyota and PSA have said they expect to see supply chain disruption while Fiat-Chrysler has warned it may have to halt some European production if parts supply continues to be affected.



Vousden adds:
“Turning to the other two ‘triad’ markets – North America and Europe – we can see similarly concerning figures. North America’s January 2020 sales sank by 3.6% to 1.32 million compared with January 2019 – a notably faster rate than the modest 0.8% yearly decline seen one year earlier. Europe’s January 2020 sales of 1.44 million units are a 5.8% decline on January 2019.”



These sudden drops in sales across the largest vehicle markets have, understandably, led to a significant drop in the seasonally adjusted annualized rate (SAAR) of sales for 2020. Global vehicle sales SAAR stood at 88.5 million in December 2019 but, just one month later, sank 10% to 79.7m.



Vousden concludes:
“We’re seeing alarming drops in sales across the board in January 2020, and we expect that to lead to a much weaker overall market this year. Considering the market’s general weakness in 2019, the emergence of COVID-19 couldn’t have come at a worse time. Automakers and suppliers must prepare for lower sales, lower profits and disrupted supply chains throughout the coming year.”




 GlobalData

Permanent-URL: http://www.automobilsport.com/coronavirus-nosedive-global-vehicle-sales-lowest-since-2012-globaldata---204718.html

04.03.2020 / MaP

More News

Kia Motors America Announces Record February Sales
03.03.2020
Best-Ever February Sales of the Sportage SUV Leads Kia to a Twenty Percent Year-Over-Year IncreaseKia Motors America today announced record February sales of 52,177 vehicles, a 20-percent increase over the same period last year. Sales were led by the Fo more >>
Record Truck Deliveries and Strong Car Sales Boost American Honda to February Records and 2020 Gains
03.03.2020
    American Honda trucks set new February record as both Honda and Acura Divisions set new benchmarks    American Honda sales were up 4.2%, with trucks gaining 6% and passenger cars up 2% for the month &n more >>
European Commission and cities and regions pledge closer cooperation to boost uptake of Free Trade Agreements
02.03.2020
Trade Commissioner Phil Hogan joined the members of the European Committee of the Regions' (CoR) commission for economic policy (ECON) on 2 March to discuss the opportunities and obstacles of implementing EU Free Trade Agreements (FTAs) on local and regional level. The ECON members also adopted their recommendations on the implementation of FTAs, t more >>
Hyundai Motor Company appoints new head of Middle East and Africa region
02.03.2020
Hyundai Motor Company has announced the appointment of Mr Bang Sun Jeong as its new vice president of the Middle East and Africa region. Based at Dubai's regional headquarters in the United Arab Emirates, Jeong will oversee the day-to-day operations and wil more >>
Kia Motors announces February global sales
02.03.2020
Kia Motors Corporation today announced its February 2020 global sales results for passenger cars, recreational vehicles (RVs) and commercial vehicles, recording a total of 187,844 units sold, which represents a five percent decrease from February 2019.Compared to February 2019, the sales more >>
Wayne Griffiths, new Chairman of the Board of Directors of CUPRA
02.03.2020
The CUPRA Tribe continues to grow    The current CEO is now also the brand’s senior executive    CUPRA expands its team in order to achieve a turnover of one billion eurosWayne more >>
Volkswagen Group with positive business performance in 2019
28.02.2020
 Sales revenue increases to EUR 252.6 billion (+7.1 percent) – operating profit before special items grows to EUR 19.3 billion (+12.8 percent)  Automotive Division: Net cash flow increases markedly to EUR 10.8 (-0.3) billion; net liquidity reaches EUR 21.3 (19.4) billion  Board of Management and Supervisory Board propose an more >>
Mitsubishi Motors Corporation Personnel Changes
28.02.2020
MITSUBISHI MOTORS CORPORATION (MMC) will make the following personnel changes as of March 1. Personnel Changes Effective March 1, 2020 Hiroshi N more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for January 2020
27.02.2020
January 2020     Fiscal Year 2019 (19/04-20/01)     Calendar Year 2020 (20/01-20/01) Volume     YoY(%)     Volume     YoY(%)     Volume &nbs more >>
Renault Retail Group presents its project to change scope between now and 2024
27.02.2020
    Renault Retail Group (RRG) is planning to resize its business activities in France.    The project will involve the sale of ten dealerships to reliable and robust purchasers, safeguarding jobs.    The project will enable RRG to pursue its recovery and optimize future investments. more >>
Groupe PSA achieved a new profitability record in 2019
26.02.2020
•    €74.7 billion Group revenue up 1%•    8.5% Group adjusted operating margin[1] at €6.3 billion•    8.5% Automotive division[2] adjusted operating margin up 0.9 pt at €5.0 billion•    Record net result Group share at €3.2 billion•&nb more >>
In 2019, Groupe PSA contributed €4.4 billion to France’s trade balance
25.02.2020
•    A positive contributor for more than five years•    One-third of French automotive exports are Groupe PSA models•    The Group produces more vehicles in France than in any other country•    Fifteen models are manufactured in France, including high value-added mo more >>
Mercedes-Benz Bank sets records in 2019
24.02.2020
    New business with leasing and financing for Daimler vehicles grows to a new high of 13.3 billion euros in 2019.    Customer deposits increase to 11.9 billion euros.    Growth potential with hybrid and electric vehicles. more >>
Johnson’s no-deal threat ‘further cause for concern’ for UK auto industry, says GlobalData
24.02.2020
Ahead of the trade negotiations between the UK and EU next month, Prime Minister Boris Johnson has vowed to walk away from the table if political and legal sovereignty conditions are not met.A statement from Downing Street said: “The UK’s primary objec more >>
Porsche Ventures invests in US software company DSP Concepts
21.02.2020
Growth financing for audio specialists based in Silicon ValleyDSP Concepts team: 2nd ltr, Paul Beckmann (CTO), 3rd ltr, Chin Beckmann (CEO)Porsche has purchased a stake in Silicon Valley-based DSP Concepts, Inc. A tota more >>
Ford's European unit points the way for Ford turnaround, says GlobalData
21.02.2020
In an exclusive interview with GlobalData, Ford of Europe President Stuart Rowley outlined the unit’s strategy to move from operating at a loss to turning a profit.David Leggett, Automotive Editor at GlobalData, a leading data and analytics company, offers his more >>
Expert comment: Supply and demand problems growing for car makers as coronavirus hits Chinese sales
21.02.2020
 Responding to reports that car sales have fallen 92 per cent in China, Christian Stadler, Professor of Strategic Leadership at Warwick Business School and an expert in the automotive industry, said: more >>
New record for BMW Group idea management – Employee proposals generate over 62 million € in savings
21.02.2020
- Top idea saves 39 million € in first year - Horstmeier: “Our employees make all the difference” Improvements proposed by BMW Group employees reached a new all-time high last year as part of the CRE8 ide more >>
Daimler optimizes decision-making processes and streamlines organizational structure
21.02.2020
    The Board of Directors and the Supervisory Board of Daimler AG and Mercedes-Benz AG optimize Mercedes-Benz Cars’ development, operation and finance area by realigning the Company’s organizational structure. This reorganization will take effect on April 1, 2020. more >>
Abu Dhabi to host United Nations forum on investment and technology for sustainable development.
17.02.2020
World leaders, top CEOs to make global push for sustainable investmentGovernment leaders, global CEOs and other investment stakeholders will step up efforts to promote investment for sustainable more >>
Daimler reports full-year 2019 results
11.02.2020
    Group unit sales of 3.34 million vehicles (2018: 3.35 million)    Revenue up 3% to €172.7 billion (2018: €167.4 billion)    Group EBIT of €4.3 billion (2018: €11.1 billion) more >>
Ford Announces Senior Leadership Changes as Company Continues Transformation
10.02.2020
•    Jim Farley becomes chief operating officer, reporting to president and CEO Jim Hackett, responsible for all global markets and automotive operations, Ford Smart Mobility and autonomous vehicles •    Hau Thai-Tang takes on an expanded role in delivering great products, services and experiences for Ford customers. He will cont more >>
Mitsubishi Motors South Africa announces soaring sales in shrinking market
07.02.2020
•    Retail sales for the 2019 calendar year up by 13.6%•    Latest Triton, new Eclipse Cross lead the way•    January 2020 dealer retail figures up by 31% vs 2019MITSUBISHI MOTORS more >>
Porsche Ventures invests in software start-up Nitrobox
04.02.2020
Hamburg-based company concludes financing round in the single-digit million range     Nitrobox founders: CEO Henner Heistermann and CTO Sven Grimminger (left to right)The software start-up Nitrobox Gm more >>
Honda Trucks Set Records, Acura Cars Rise for American Honda in January
03.02.2020
    American Honda trucks set new January sales record    Honda brand trucks mark best January sales, rising 2.3%    Honda truck sales gains led by HR-V with new January record (up 25%) and Ridgeline (up 57%)    Acura brand car sales rise 6% as ILX climbs 16% and TLX gains 6% more >>
Change of management: Personnel changes at Daimler Trucks & Buses
03.02.2020
    Ulrich Bastert, Head of Sales and Marketing at Daimler Buses, will be retiring in the middle of this year.    Philipp Schiemer, who is the current Head of Mercedes-Benz do Brasil Ltda., will be taking over his position starting on June 1st.    On May 1st, Karl Deppen will become the new Head of Me more >>
Kia Motors announces January global sales
03.02.2020
Kia Motors Corporation has announced its January 2020 global sales results for passenger cars, recreational vehicles (RVs) and commercial vehicles, which saw 215,112 units sold, representing a 2.5 percent rise from January 2019.Sales in Korea decreased to 37,050 units fr more >>
Lexus announces global sales 2019 results
03.02.2020
Global sales for January–December 2019 marked a new annual record high of 765,330 units (a 10% increase from the previous year). In addition to the well-received UX and redesigned ES, which were introduced in 2018, and the popular RX, which underw more >>
Mitsubishi Motors Responsibility Changes in Executive Officers
31.01.2020
Mitsubishi Motors Corporation (MMC) will make the following responsibility changes in the executive officers effective February 1, 2020. Effective February 1, 2020     more >>
Renault-Nissan-Mitsubishi further strenghtens the use of resources and investments
30.01.2020
Renault-Nissan-Mitsubishi today outlined a new framework to further reinforce its business model and strengthen its management structure. All three companies reiterated that the Alliance is essential for strategic growth and enhance competitiveness for each company. more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for December 2019 and Calendar Year 2019
30.01.2020
Mitsubishi Motors Production, Sales and Export Figures for December 2019 and Calendar Year 2019December2019     Fiscal Year 2019 (19/04-19/12)     Calendar Year 2019 (19/01-19/12) Volume(unit)     YoY(%)     Volume(unit)     YoY(%)     Volume(unit)     more >>
Appointment of Mr. Luca de Meo as Chief Executive Officer of Renault
28.01.2020
Appointment of Mrs. Clotilde Delbos as Deputy Chief Executive Officer of Renault   Following the selection process led by the Governance and Compensation Committee, the Board of Directors, meeting today under the chairmanship of Mr. more >>
2019 sees production record for SKODA AUTO at its Czech plants
24.01.2020
- More than 900,000 vehicles built in the Czech Republic in a single year for the first time, equating to an increase of 2.25 per cent compared to the previous year- Investments: ŠKODA AUTO has been consistently modernising its three Czech sites in line with Industry 4.0- 2025 Strategy: car manufacturer electrifies its model range and develops more >>
BMW i Ventures Announces Investment in Software Motor Company.
22.01.2020
BMW i Ventures announced today an investment in Software Motor Company (SMC) a Silicon Valley-based company developing the world’s most reliable, efficient and intelligent motor systems.  The new funding will enable SMC to further scale its business and accelerate product development.   “Electric motors are a massive, $10 more >>
Daimler AG Preliminary results for the financial year 2019
22.01.2020
...including anticipated additional expenses below earnings expectationsIn the financial year 2019, Daimler AG has achieved a preliminary Group EBIT of EUR 5.6 billion (financial year 2018: EUR 11.1 billion). Not included therein are anticipa more >>
SEAT Martorell produces more than 500,000 cars in 2019
22.01.2020
    Martorell increases output by 5.4% and consolidates itself as the factory that makes the most cars in Spain    Global SEAT vehicle manufacturing goes up by 12.1%    Production of the new Leon and more >>
Kia Motors announces 2019 fourth-quarter business results
22.01.2020
    Q4 2019 sales revenue at KRW 16.11 trillion, up 20% Y/y    Quarterly operating profit at KRW 590.5 billion, up 55% Y/y    Q4 net profit at KRW 346.4 billion, more than tripled from KRW 94.3 billion    Global sales of 728,296 units vs. 738,915 in Q4 2018    Kia t more >>
China weighed heavily on 2019 global light vehicle sales with further decline expected for 2020, says GlobalData
22.01.2020
In 2019, global light vehicle (LV) sales were at their lowest point since 2015, at 89.8 million, which was 4.8% down on 2018’s 94.3 million total. December’s sales of 8.15 million were 2.3% lower than in December 2018, according to GlobalData, a leading data and analytics company. more >>
IMF Global Outlook
22.01.2020
Global growth is sluggish but tentatively stabilizing after two years of slowing, the IMF reported Monday (January 20) in its latest quarterly update to the World Economic Outlook report.“So we have seen tentative signs that global growth may be stabilizing at subdued levels. We are projecting growth to recover modestly from 2.9 percent in 2019 to more >>

2001-2020 automobilsport.com full copyright