Car production in Europe could fall to 70%, but the Outlook optimistic

FineAuto
Car production in Europe could fall to 70%, but the Outlook optimistic

According to their estimates, the total volume of car production in the world in 2020 will decrease by 16%. The production will be able to return to the same level as last year – 89 million vehicles – not before 2021.

Signs of recovery in the industry, as noted by RBC Capital emerged in China in the first quarter.

“More than 90% of the dealers resumed work in March in the country, which in December was first discovered a new type of coronavirus. In addition, retail sales in the second week of April increased by 14%, after declining 35% in the first week of the month and falling prices in the first three months of 2019”, – analysts say.

The producers of premium brands in China in the first quarter continued to outpace the mass market with the same margin as in the previous quarters. As noted in the report, this is a good sign for manufacturers such as BMW, Daimler and Volkswagen.

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According to analysts, manufacturers of luxury cars less competition from mass segment risk in connection with the loss of jobs employees deprived of work are mostly blue collar, while the position of “white” remained more stable from the point of view of the possibility of transition to the remote mode.

“In addition, many consumers save money in the quarantine and can very quickly shell out for buying the car after the lifting of isolation, especially as an alternative to public transport,” – said RBC Capital.

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