Moody's Expects Modest Plunge in Auto Sales for 'Standout Performer' S. Korea
Moody's Investors Service forecasts that South Korea will sell more in the "secondary auto markets" than other countries this year.
According to Moody's, South Korea was the "standout performer" for electing against the across-the-board lockdown regulations prevalent in most other markets.
Consequently, Moody's anticipates a more modest 6 percent plunge in auto unit sales, followed by a 2 percent rebound in 2021.
Meanwhile, Moody's expects a far worse drop of at least 30 percent in auto sales in Argentina, Brazil, India, Indonesia, Mexico, and Russia this year. Sales in these markets are expected to rebound by 15 to 20 percent in 2021.
Moody's sees global vehicle sales plummeting 20 percent to 72 million units this year from 90.2 million units last year due to a sharp drop in economic activity caused by the COVID-19 pandemic.
Global auto sales are expected to rebound next year by 11.5 percent to 80.3 million units. Beyond 2021, the increase in auto sales is likely to continue at a slower pace.