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COVID-19 and its Impact on the Automotive Sector

COVID-19 and its Impact on the Automotive Sector

  • May 2020
  • 51 pages
  • ID: 5894135
  • Format: PDF
  • GlobalData


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COVID-19 and its Impact on the Automotive Sector

This is the second of many Covid-19 reports on the automotive sector - this report reflects our perspective as of 10 April, 2020, although the outbreak is moving quickly, and some of the perspectives in this article may fall rapidly out of date.

This second issue highlights the global light vehicle sale scenarios under COVID-19, whereby we have aimed to achieve substantive coverage with a measured approach through the selected regions: Asia-Pacific, Europe, North America and South America. Secondly, we have underpinned Original Equipment Manufacturer (OEM) exposure assessment, covering the world’s largest markets: China, North America and Europe.

Key Highlights
- Sectoral Concerns have moved on from being centered on supply chain disruption emanating from the source of the virus’s inception to the demand side of the equation.
- Initial reports revealed the deep-seated complexity of supply chains as production at FCA and Hyundai factories in Europe and South Korea was disrupted.
- However, given the size and importance of the Chinese market to the industry, global light vehicle sales were severely dented in January 2020.
- No parts of the automotive value chain will be undamaged in the short-term, with some more exposed than others
- Most plants in Europe and North America are now closed. For Europe we estimate the impact of the closures - taking the end of April as a cut-off point - at 1.3 million vehicles being cut from production
- All eyes will now be on China for first indications of how the industry can recover, as the country itself restarts operations and returns to some semblance of normality.

- This report contains global light vehicle sale scenarios under COVID-19. The regions selected include: Asia Pacific, Europe, North America and South America.
- In each of the above regions we aimed to accommodate countries that cumulatively represented between 80% and 90% of sales in the region in January 2020.
- The approach brings 21 countries accounting for 81.2% of light vehicle sales recorded globally in January 2020
- Additionally, it contains OEM Exposure and an OEM Exposure Index, covering the world’s largest markets: China, North America and Europe.
- A section ‘OEM Plant Shutdowns in Europe and North America’ highlights plant shutdowns that have roiled the industry globally

Reasons to Buy
- COVID-19 will be one of the most important themes of 2020, meaning it’s vital to understand the impact on your industry
- Utilize this report to identify industry expert perspectives on the outbreak and the impact on the automotive sector

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