Auto industry faces lengthy decline in sales
Global new vehicle sales could face years of falls or stagnation, hurting OEM profits and putting pressure on investment in R&D, technology and jobs, according to a forecast by Automotive from Ultima Media’s new business intelligence unit.
The automotive industry is the second year into what could be years of falling or stagnant new vehicle sales in an almost unprecedented decline at a global level, signalling structural changes across automotive OEMs.
That is according to a forecast by Automotive from Ultima Media, a new global business intelligence unit by the specialist B2B publisher of automotive media, including Car Design News.
The report, ‘Automotive headwinds align into a perfect storm’, foresees significant risks for the industry. This year, most major automotive markets have seen deteriorating economic conditions, including large declines in China. Germany, Japan, the UK and even the US are showing some of the early signs of an imminent recession and this is impacting consumer confidence.
According to Daniel Harrison, automotive analyst at Ultima Media and author of the report, this softening macroeconomic climate exposes OEMs to considerable risk, just at a time when carmakers are under intense pressure to invest in electric vehicles, as well as other technology key to future mobility. The impacts for the global sector are set to be profound, including to R&D and new technology investments. So far this year, OEMs have announced thousands of job losses.
A full copy of the report, ’Automotive headwinds align into a perfect storm’, is available to download below for free by registering or signing in to Car Design News.