Automobile Industry Association, “World’s first sales increase in September this year”

Input 2020.11.09 10:38

Car sales around the world rose for the first time this year.

The Korea Automobile Industry Association (KAMA) announced on the 9th that global auto sales in September reached 7.95 million units, up 2.0% from the same month last year.

By region, sales increased over last year, mainly in the United States, Europe, China and India. The United States has seen an increase for the first time since the Corona 19 outbreak, with 1.34 million units sold, up 6.1% from last year. This is due to the increased demand for cars as they avoided public transport and the government’s economic stimulus measures, such as lower interest rates, were added.

Europe sold 1.8 million units, down 11.9% in August, up 5.3% in September. The demand for air has been partially addressed, and continuing travel restrictions and incentives for low-emission vehicles appear to have had an impact.

However, it is unclear whether global auto sales growth will continue due to the re-proliferation of Corona 19 from last month. As countries like France, the UK and Belgium have imposed a national lockdown since this month, new car sales are expected to decline as auto shops close.

In the US, auto sales rose slightly (1.1%) last month, but the recent increase is uncertain due to the re-proliferation of Corona 19 and still high unemployment rate, declining consumer sentiment due to rising permanent unemployment and delays in negotiations for additional economic stimulus funds due to the presidential election.

The Automobile Industry Association explained that it is unclear whether domestic auto exports, which showed an increase for two consecutive months in September and October this year, will continue. He also pointed out that there is more concern about the proliferation of the liquidity crisis among suppliers due to union risks, such as the recent application of a partial strike for GM Korea, the preparations for the Kia Motors union strike and the delay in negotiations between the work and the management of Renault Samsung Motors.

Man-gi Chung, president of the Automobile Industry Association, said: “It is fortunate that the crown crisis has slowed down for a while and global demand has recovered.” Conflicts between work and management, such as the bargaining and strikes in the auto industry, which have not reached an agreement recently, should be resolved as soon as possible, “he stressed.