Rishitha Jaladi(Intern Journalist): The COVID-19 pandemic has severely affected the global economy. Chiefly, the automobile industry has never seen such a deterioration in the past 20 years. Expectations about profits in automobiles is not even close to reality in the year 2020.
Sales of every vehicle segment including commercial vehicles, passenger vehicles, and luxury cars, took the edge off. Corona has changed the face of the automobile market completely. And the global trade impact was $5.7 billion with the European Union. The crisis severely affected the auto industry resulting in a 12%-15% dip in 2020. As all the manufacturing units, showrooms have shut down the economy of the world has fallen sharply, Among which Germany and Spain have reported the highest production loss.
New car registration in big 5 European markets has taken a hit with Germany, Italy, Spain, the UK, and France reporting a decline of 11%, 9%, 6%, 3%, and 3%, respectively. As the epicenter of the corona has shifted from china, Thousands of new cases are reported every day, especially in Asia and Europe, It’s difficult for auto manufacturers to resume production soon. Although many relief plans are suggested, It will definitely take time to recover from this enormous loss.