Global production (PC + LCV) fell by 31.7% in the first half of 2020
- Global automobile production (Passenger Cars + Light Utility Vehicles) fell by 31.7% in the first half of 2020, due to the coronavirus crisis, a drop which is stronger than the drop of the global market, showing that a significant number of sales were made from stock. The resulting destocking is estimated by Inovev at 5% of sales, ie 50% of stock at the start of the year. As a result, restocking is expected during the second half of the year, in order to recreate stocks at the start of the year, or 5% of sales. We estimate that for a year of sales, a continual safety stock of 10% is required, meaning the equivalent of about a month of sales.
- January 2020 recorded a 23.4% drop in production against a 10.0% drop in the world market.
- February 2020 recorded a 32.7% drop in production against a 21.8% drop in the world market.
- March 2020 saw a 41.5% drop in production against a 39.1% drop in the world market.
- April 2020 saw a 48.8% drop in production against a 41.4% drop in the world market.
- May 2020 recorded a 35.6% drop in production against a 29.4% drop in the world market.
- June 2020 recorded a 15.5% drop in production against a 12.9% drop in the world market.
- On the graph below, we can see that the production restart has taken place since May 2020 but that it will be necessary to wait until July to see a real recovery. The production loss from February to May will likely not be caught up.
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