Global Sales in Automotive industry Declines with the Growing sales of E-cars

The International Automobile Exhibition or Internationale Automobilausstellung (AAI) was held on 12th September in Frankfurt, Germany. AAI is an international trade for mobility, transport, and logistics. It was, not long ago, considered as the leading trade fair for the global world of automobile. Despite this, this year many companies like Peugeot, Mazda, Volvo, and Toyota did not participate.

This is due to the severe crisis faced by the automotive industry in the year 2019. The industry has been suffering due to lower profits and depreciating share prices. It has seen the continuous growth of the market for 28 years, but for the first time since the mid of 2018, it is observing a shrinking market. The global demand for automobile is weakening and it is taking a toll on figures.

The first half of 2019 reported a fall of five percent in the production sector accounting to 46 million units. Daimler and Ford saw decreasing profit margin, Bosch reported job cut in suppliers. Tesla’s is also reporting a declining share. Honda, Toyota, Mitsubishi, and BMW are the only companies selling more cars compare to last year.

The global automotive industry is struggling along with the Chinese. The trade was between the U.S. and China has only escalated the worries.

The first half of 2019, reported 13% shrink in the market globally. Resulting in declining sales and reduced investment to impact the market negatively. The year also observed the depreciating profits of 16 largest automobile companies.

However, the global e-car market is registering growth in sales. In the first half of 2019, 600,000 electric and plug-in hybrids were registered an increase of 52% compared to last year. The USA the second-largest market alone reported a growth of 20% with 150,000 new registrations. Germany on the third and Norway on the fourth position registered a sales growth.

 

 

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