Moody’s Investor Service is slashing its global vehicle sales forecast as the coronavirus outbreak reduces demand and disrupts automotive supply chains.
The firm now expects global auto sales to slump 2.5% in 2020 instead of a 0.9% drop previously expected. Moody’s cited the COVID-19 epidemic as well as stricter emissions regulations for the overall decline in vehicle sales from 90.3 million to 88 million.
“Cautious consumers are steering clear of crowded areas, including auto dealerships, while corporate demand for vehicles is weakening as broader economic uncertainties cause companies to scale back capital spending,” Moody’s said in a report Wednesday regarding China.
