-covid-19 And Its Impact On The Automotive Sector By: khansurry
This is the 40th edition of our regular COVID-19 reports covering the automotive sector. It covers a review of the global light vehicle market in 2021 and GlobalData's current forecast for 2022. Information is as of 20th April 2022.
What is the impact of COVID-19 on sales in the automotive sector?
March's sales result was in keeping with the mounting headwinds that have been observed and is not helped by comparison with a relatively strong base. North America was also weak, with market weakness there dominated by ongoing supply issues. Asia was more resilient, with China's market holding up reasonably well. However, lockdowns in Shanghai due to increasing COVID rates threaten that resilience and will also have economic implications for China and the rest of the world given the city's role as a trade and economic hub.
Pressures are mounting in automotive markets. Supply constraints are ongoing and further complicated by the Russia-Ukraine conflict limiting supplies of vital components. The conflict, the terrible human cost aside, threatens wider macroeconomic contagion. The downside risk of mounting inflation proving to be more than transitory looks like it will come to pass thanks to the oil price shock and commodity price pressures due to the Russia-Ukraine conflict.
Latent demand, which had underpinned prior hopes of recovery, could evaporate as a by product of the Russia-Ukraine conflict. The oil price shock and mounting raw material prices add to inflationary pressures. To counter tighter monetary policy is evident in much of the world a will put a further squeeze on new vehicle demand.(read entire article)(posted on: 2022-09-05)
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