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.
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.
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.
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.
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.
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.