AgenciesAmong the Asia-Pacific countries, India is set to see the strongest growth in automotive sales in 2022, Moody’s Investor Service wrote in a note on Tuesday.
India, which is the fourth largest automotive market in the world, is set to see a growth of 10% in 2022 on strong underlying demand reflecting the general economic recovery and consumers' preference for personal vehicles over public transportation, the report said. India had seen a 27% growth in 2021.
The research firm has, however, lowered the global vehicle sales forecast on supply chain problems & the invasion of Ukraine. The reduced forecast for global light vehicle sales is mainly the result of Russia's invasion of Ukraine, it said.
Moody’s has revised its forecast for Asia-Pacific from a 4.7% growth seen earlier to 3.4% now, reflecting further temporary Covid-related lockdowns that could constrain supply chains and production in the region.
“Supply bottlenecks are temporary and more normal component supplies will be available from the third quarter onward. We also expect demand for vehicles to continue to exceed supply throughout the year,” Moody’s wrote in its report.
While auto sales in North America are set to be the strongest this year, Europe is set to take a huge knock. It has lowered its vehicle sales growth expectation for Europe, Middle East & Africa region to 0.5%, from 8.5%. “Russia will suffer most, with sales likely to drop about half, as a result of sanctions and suspension of production in the country by global automakers,” the report said.
Moody's has maintained its 'stable' outlook on the global auto sector but would consider changing it to 'negative' if it expects a contraction in light vehicle sales, a slowdown in organic revenue growth to below 2.5%, and negative free cash flow.
India, which is the fourth largest automotive market in the world, is set to see a growth of 10% in 2022 on strong underlying demand reflecting the general economic recovery and consumers' preference for personal vehicles over public transportation, the report said. India had seen a 27% growth in 2021.
The research firm has, however, lowered the global vehicle sales forecast on supply chain problems & the invasion of Ukraine. The reduced forecast for global light vehicle sales is mainly the result of Russia's invasion of Ukraine, it said.
Moody’s has revised its forecast for Asia-Pacific from a 4.7% growth seen earlier to 3.4% now, reflecting further temporary Covid-related lockdowns that could constrain supply chains and production in the region.
“Supply bottlenecks are temporary and more normal component supplies will be available from the third quarter onward. We also expect demand for vehicles to continue to exceed supply throughout the year,” Moody’s wrote in its report.
While auto sales in North America are set to be the strongest this year, Europe is set to take a huge knock. It has lowered its vehicle sales growth expectation for Europe, Middle East & Africa region to 0.5%, from 8.5%. “Russia will suffer most, with sales likely to drop about half, as a result of sanctions and suspension of production in the country by global automakers,” the report said.
Moody's has maintained its 'stable' outlook on the global auto sector but would consider changing it to 'negative' if it expects a contraction in light vehicle sales, a slowdown in organic revenue growth to below 2.5%, and negative free cash flow.
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