Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021

Must Read

FG, States, LGAs share N528.39bn FAAC allocation in Jan 2021

The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.34bn to the three tiers of government in December...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

The COVID-19 pandemic hit the automotive industry hard, causing supply chain disruptions, factory closures, and huge sales and revenue drops.

According to data presented by Stock Apps, global passenger car sales is expected to plunge by $440bn in 2020 due to the coronavirus outbreak. The downsizing trend is set to continue next year, with revenues falling by 10% YoY in 2021.

Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 Brandspurng

Revenues to Continue Falling in the Next Two Years

Even before the pandemic, the car industry was already coping with a downshift in global demand. In 2016, global car sales revenue, including passenger cars, sports cars, SUVs, and MPVs, hit $2.26trn, revealed Statista data. In the next twelve months, this figure slightly increased to $2.27trn.

Statistics show that in 2019, global passenger car sales revenues amounted to $2.29trn. Small SUVs sales, as the largest revenue stream, generated almost 30% of that value or $647bn. Large SUVs and large cars segments followed with $362bn and $275bn in revenue, respectively.

However, the COVID-19 pandemic caused a huge hit, with total car sales revenues falling by almost 20% year-over-year to $1.85trn in 2020. Statista data revealed that revenues in the large cars segment are expected to drop by 25% YoY to $233bn. Large SUV sales are set to witness a 24% cut this year, with revenues falling to $275bn in 2020. Small SUVs follow with a 20% drop and $525bn in revenue.

Read Also:  Mercedes-Benz Unveils the New Maybach S-Class, Costs $184,900
- Advertisement -

Analyzed by carmakers, Toyota represented the market leader with a 10.6% market share in 2020. Volkswagen ranked second with a 7.4% market share. Nissan, Ford, and Hyundai follow, with a 6.6%, 6.2%, and 5.6% share, respectively.

Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021
The Volkswagen Amarok radio ad depicts a man in a mall amid frenzied shoe shopping.

Statistics show the downsizing trend is set to continue in 2021, with global passenger car sales revenues falling to $1.65trn. In 2022, this figure is expected to decrease by another 6% to $1.55trn.

Read Also:  Nigeria: Pick-up in air passenger traffic

Three Largest Markets Lost $231.5B in Revenue Amid COVID-19 Crisis

Statista data also revealed that all of the leading car markets are expected to witness a two-digit revenue drop this year. As the largest market globally, the car sales revenue in the United States is forecast to fall by almost 18% YoY to $507bn in 2020. This figure is expected to plunge to $385bn in the next two years, nearly 40% less than in 2019.

- Advertisement -

China ranked as the second-largest market globally with $452bn in revenue in 2020, an 18% fall year-over-year. By 2022, total car sales revenues in China are set to drop to $405bn.

As the third-largest market, Japan witnessed an almost 19% YoY drop, with passenger car sales revenues falling to $92bn in 2020. Germany follows with $86.5bn in revenue, 17% less than in 2019.

The Statista data show the three leading markets lost $231.5bn in car sales revenues in 2020 due to the COVID-19 crisis.

- Advertisement -
Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 - Brand SpurGlobal Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 - Brand SpurGlobal Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 - Brand Spur

Latest News

Average Price of 1kg of Yam Tuber Increased by 18.77% in March 2021 – NBS

Prices of selected food items including eggs, tomatoes, yam, rice increased year-on-year in February data from the National Bureau...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 - Brand SpurGlobal Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021 - Brand Spur