Global Automotive Market Recovery Forecast For 2023
GlobalData forecast that the global light vehicle market is likely to stay under pre-pandemic levels until 2023. Calum MacRae, Automotive Analyst at GlobalData, says:
“Demand and industry output is now in recovery phase, but the economic foundations for the global vehicle market are fundamentally damaged.”
It is predicted that the global light vehicle market will grow by only 14.6% to just over 85 million in 2021, compared with 89 million units in 2019. It is projected that the market will not return to at least 2019 levels until at least 2023.
“That 85 million market level projected for 2021 compares with a previous peak of 94 million light vehicle sales achieved in 2017 and 2018. It is also a long way removed from the over 100 million annual global market being viewed as highly possible just a few years ago.”
The economic backdrop is set to change as the market recovery this year has only been as a result of the reaction to the pandemic rather than part of the more conventional economic cycle that we see in normal times.
COVID-19 Threatens Shared Mobility
The pre-pandemic buoyant ride-hail sector is under threat due to shifting consumer attitudes across the world, according to a new study by GlobalData. Mike Vousden, Automotive Analyst at GlobalData says:
“In simple terms, the concept of shared mobility is now in question as consumers re-evaluate their risk appetite for exposure.
“Sharing an enclosed vehicle – whether it is a ride-hailed taxi or a shared car club vehicle – now presents an increased chance of infection. This will blunt growth in the sector, preventing it from reaching the economies of scale needed to become financially sustainable.
“Uber, for example, painted a bleak picture with its second quarter 2020 earnings, reporting a 35% year-on-year reduction in the number of bookings on its platform. This pivot to a sudden, dramatic decline reflects the sheer speed with which COVID-19 has upended the ride-hailing industries.”
GlobalData’s study concludes that demand for ride-hailing and car sharing is unlikely to reach its pre-COVID targets due to the on-going structural changes in people’s working patterns with a big switch to remote and home working, which for many be become permanent.
Electric Mobility With Renault eWays
Groupe Renault is looking to the future of electric mobility with its inaugural eWays event, running now until 27th October 2020. The Renault eWays forum is exploring not only the future of electric vehicles and mobility, but also cities and technology with a series of press conferences, world premieres and panel discussions.
Renault now has 10 year of experience in designing, manufacturing and marketing electric vehicles and Renault offers eight different models with more than 350,000 electric vehicles currently on the road.
Making a commitment to achieve a zero CO2 impact by 2050 in Europe, Groupe Renault is also aiming to reduce its CO2 emissions by 50% by 2030, compared to 2010.
All new Renault models will have an electric or electrified version available by 2022, which represents a new milestone for the company, which is positioning itself as a major player in sustainable mobility and its ecosystem, for not only today but for years to come.
Commuters Desert Public Transport
Research from online parking platform YourParkingSpace.co.uk indicates that commuters are deserting public transport.
Looking at the latest booking data, which advertises available parking spaces at train stations and in city centre locations near to offices and workplaces, shows a marked drop for the former in favour of the latter with bookings at train stations via the online parking platform being down 46 per cent while in city centres they are up 19 per cent compared to pre-lockdown in February.
Images courtesy of Renault UK