Global automotive market Q1 2020
Shanghai (China), Bengaluru (India), Singapore, Reading (UK) and Portland (US) – Thursday, 23 April 2020
The COVID-19 pandemic has had a major negative impact on the already struggling auto market. Canalys forecasts that sales of new cars in 2020 will fall 14% worldwide compared with 2019.
Region |
2020 sales (million) |
2019 sales (million) |
Annual growth |
China |
21.0 |
24.5 |
-14% |
Rest of APAC |
11.8 |
13.4 |
-12% |
EMEA |
17.8 |
20.6 |
-13% |
Latin America |
3.8 |
4.5 |
-16% |
North America |
15.4 |
18.7 |
-18% |
Total |
69.8 |
81.6 |
-14% |
The automotive supply chain was hit hard in early 2020 as COVID-19 emerged in China and production of key components stopped. COVID-19 was declared a pandemic in mid-March and lockdowns, with varying restrictions, were enforced. This halted manufacturing, distribution and consumer demand, and significantly reduced car use. While it is possible to buy a new car online, few people will without viewing and taking a test drive. Dealerships have inventory but most are closed. Even in China, where dealerships have started to reopen, customer traffic is much lower than normal.
“There were low double-digit sales declines in all the major markets in Q1 2020. Q2 will be worse as restrictions will be in place around the world for much, and in some countries, the entire quarter. The decline will continue, but will ease, in the months to follow as restrictions gradually lift. But with rising unemployment and a looming global recession, the recovery will be slow, and it will not be a full recovery. Canalys forecasts that sales will not exceed the heights of 2017 in the coming years,” said Chris Jones, Chief Analyst for the automotive sector at Canalys.
“While the automotive industry has been hit hard by the pandemic, it had not been growing in the last two years. Though the virus is wreaking devastation on people’s personal lives and the global economy, Canalys believes that some positives will emerge in transportation as a result. There are opportunities for safety and driver assistance technology, electric vehicles, autonomous vehicles and urban mobility services,” said Jones.
“Momentum was already building in Electric Vehicle (EV) sales and the charging infrastructure was expanding. Canalys expects demand for EVs to increase further with increased incentives to buy and improved consumer sentiment toward zero emission transportation.”
The near-term outlook for the widespread deployment of Autonomous vehicles (AVs) in an on-demand mobility-as-a-service context has also improved. “Governments had been slow to make decisions and pass laws regarding safety and the testing and deployment of AVs. But Canalys expects faster decision-making as an outcome of the pandemic with the aim to have safe, electric, connected AVs transporting people and goods in the next few years,” added Jones.
In addition, the world is experiencing:
“The big question is will these visible improvements last beyond the pandemic, or will we return, in a bid to get back normality, to our old transport habits?”
*Data tracked excludes Light Commercial Vehicles (LCVs).
For more information, please contact:
Canalys China
Johnny Xie: johnny_xie@canalys.com +86 159 2128 2961
Canalys India
Rushabh Doshi: rushabh_doshi@canalys.com +91 99728 54174
Canalys Singapore
Jermaine Tan: jermaine_tan@canalys.com +65 9798 6301
Canalys UK
Chris Jones: chris_jones@canalys.com +44 7867 389 727
Canalys USA
Marcy Ryan: marcy_ryan@canalys.com +1 650 862 4299
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