IHS Markit forecasts 18% drop in global vehicle sales YoY to 73.3M units under extended lockdown scenario
IHS Markit is projecting an 18% drop in global new vehicle sales year-on-year under an extended lockdown scenario to 73.3 million units. Regionally, that breaks out to:
-26% US vehicle sales decline YoY to 12.6 million units
-17% Europe vehicle sales decline YoY to 17.1 million units
-14% China vehicle sales decline YoY to 21.8 million units
The US has seen a 30% decline in national registration volume in March 2020 over February 2020. Half of the United States is now seeing a MoM new vehicle registration decline of 25% or greater from February into March. As April unfolds, there will likely be a further decline as more states move to tighter consumer and business restrictions, IHS Markit suggested.
IHS Markit said that the 40% chance of an extended lockdown forecast reflects immediate impacts of new containment measures that have been announced globally and expanded within countries already confronting the virus. A stronger economic response in 2021-2023 pushes global growth above 3% annually.
A 15% probability of an extended lockdown with ineffective stimulus scenario contains stringent virus-fighting efforts lasting into the third quarter of 2020. Stimulus measures prove ineffective at backstopping crisis and unemployment rates spiral. Recovery begins later and at a much slower rate than anticipated. Global vehicle sales in this scenario collapse by more than 20% to 71.2 million units.