Hyundai Motor Corp’s think tank has said that it estimates that vehicle sales dipped by 5% in 2019 to 86.95 million units as compared to 2018.
The dip of 5% is attributed to lower vehicle sales in emerging economies like China, India, and Brazil. Sales in America and Northern Europe are expected to remain stagnant at low levels.
The think tank believes that global vehicle sales in 2020 will grow by 0.4% to 87.3 million units.
Explaining the reasons behind the low growth forecast for 2020, Hyundai’s global business R&D center head Lee Bo-sung said,
In 2020, the emerging markets are likely to see their auto sales improve a little, but not enough to have a huge impact on the overall pie.
He also said that sales in the US and Europe would not show any improvement as issues like trade wars and Brexit, which impacted vehicle sales in 2019, remain unresolved.
Lee emphasized that automakers had to look for producing cheaper vehicles due to low living costs, low-interest rates, and low development in the world economy.
Korea was not immune to global trends and vehicle sales in the country in 2019 dipped by 3.6% to 1.75 million units, as compared to 2018.
No significant recovery is expected in 2020, but the launch of new versions of luxury cars like Sorento, Carnival, and Tucson will help in boosting sales. SUV sales are expected to account for 36.9% of total vehicle sales in 2020 compared to 35.6% in 2019 due to the launch of new SUVs like GV80.
Sales of electric vehicles are expected to rise by 15.3% in 2020 to 4.29 million units, as compared to 2019. The strengthening of emission norms by Europe will be a major factor in the growth of electric vehicle sales.