Covid-19 - 'nightmare' of the world car industry

Global car sales in 2020 could be reduced by 22% compared to 2019, or about 70.3 million vehicles due to the effects of the Covid-19 epidemic.

Data released by market research firm IHS Market on April 21. The key markets such as the US, China and Europe fell sharply.

A row of Ford F-150 cars in the US. Photo: AP

The United States led the decline with an estimated 26.6%, or 12.5 million vehicles compared to last year. This is the lowest number since 2010, when the country's purchasing power at 11.6 million cars when the economy began to prosper after the Great Depression in the 2000s. In March alone, forecast data IHS Markit for the global automotive market is a 12% decrease from the same period last year.

"The unexpected and unexpected impact of the pandemic has become a powerful blow to the auto industry with unprecedented levels. It is impossible to be sure of how the industry will recover in the near future," Colin said. Couchman, a senior boss at IHS Market said. "The inherent order of the car industry is in turmoil when the demand for shopping is delayed, the global supply chain is destroyed."

In the US, many car showrooms have been closed, while online retailers. However, this method is only temporary but cannot compensate for the reduced number of tourists visiting and buying cars as traditional models.

For China, IHS forecasts that the world's largest auto market sales will decline by 15.5% in 2020, equivalent to 21 million cars. If it becomes a reality, this is the continuous and highest decline in the past three years of the Chinese car market. In 2018, the mainland automobile market fell 3% for the first time in 20 years. By 2019, car consumption will continue to decrease by 8.2%.

Western and central Europe automobile market is forecast to decrease by 24.9% of sales in 2020, or about 13.6 million units. Automobile companies here said they would gradually restore production and business activities based on local guidelines and restrictions, in addition to stimulus packages and economic support from the Government.

Europe is currently one of the hottest sites of the Covid-19 epidemic worldwide. Spain, England, France, Italy, the countries most affected by the epidemic, car dealerships here are almost completely closed.

In Vietnam, the automobile market sales in the first quarter of 2020 decreased by 33% compared to the same period last year due to the partial impact of Covid-19 epidemic. For this reason, some car manufacturers such as Toyota, Honda, Ford, Hyundai, VinFast have temporarily stopped manufacturing factories.