2019 is just over a month away, but experts predict this will be a forgettable year for the global automotive industry as purchasing power is on the decline, dragging car sales to the lowest level within 10 years back here.
The trade war between the US and China has gradually repelled the global economic growth momentum, thereby affecting directly on the automobile manufacturing and trading industry. According to CNN Business, from mid-2018 until now, global car sales have started to enter a period of unstoppable decline.
Prospects for the global automobile industry’s recovery in 2019 are becoming more and more fragile, as 2019 is only about a month away when purchasing power has not improved.
Accordingly, based on data from the International Automobile Manufacturing Association (OICA), Fitch Ratings forecast that compared to last year, global car sales in 2019 are on the decline of about 3.1 million units. This will be the largest decline in the global automotive market since the global financial crisis took place in 2008.
According to analysts of Fitch Ratings, global car sales in 2019 will stop at 77.5 million vehicles, down about 4% compared to 2018. This is the second consecutive year of sales. Global cars are in decline. Before that, in 2017 there were 81.8 million new cars sold worldwide and by 2018 they were down to 80.6 million.
Declining demand for cars in China and the United States – the two largest automobile markets in the world – is one of the reasons that pulled global car sales to the lowest level in the past 10 years. Sales report of the China Automobile Association (CPCA) shows that, in the first 10 months of 2019, car sales in this market decreased by 11% compared to the same period in 2018. This is partly due to the Chinese government’s cut back on incentives for electric cars.
In the US – the second-largest automobile market in the world, the situation is not very satisfactory as consumers increasingly hesitate to withdraw their pockets to buy new cars. Facing this situation, Fitch Ratings forecasts that car sales in the US will only reach about 16.9 million vehicles when 2019 closes, down about 2% compared to 2018.