Moody’s cuts sales forecast for global automakers again

Global auto unit sales are predicted to fall 20% this year, widening from an earlier forecast of a 14% drop, Moody’s Investors Service said.

Auto sales in Europe and the United States face steep declines in 2020. They are expected to drop 30% and 25%, respectively, Moody’s said.

Moody’s forecast in China, on the other hand, remains unchanged. The ratings agency said it expects auto unit sales in the world’s second-largest economy to contract 10% this year.

“Global auto sales growth is likely to rebound 11.5% in 2021, although off a diminished base, on expectations of a 4.8% rise in G-20 GDP growth next year,” Falk Frey, a senior vice president at Moody’s, said in a statement.