Global car sales will drop between 15-30% in 2020, as the automobile industry grapples with the economic fallout from the coronavirus.
Car manufacturers in the U.S. and Europe have temporarily suspended production due to the pandemic, and with social distancing measures likely to remain in place until summer, sales are unlikely to rebound anytime soon. Consumers have already indicated they’re holding off on big purchases, such as vehicles, until the coronavirus threat subsides.
The double-digit drop in global car sales comes as the world enters a recession due to the coronavirus, with deep economic pain ahead before any expected recovery. The paralysis in consumer spending caused by stay-at-home measures has effectively ground the global economy to a halt. Automakers haven’t received the financial support from Congress they were seeking, but according to The Detroit News, they “will be able to qualify for loans that can become grants if they demonstrate they used the money for operations expenses.”