Latin America. Research firm Statista released its latest report on global car sales. According to the results, car sales worldwide are expected to grow to more than 71 million cars in 2021, up from an estimated 63.8 million units in 2020.
The sector experienced a downward trend due to the slowdown in the global economy and the advent of the coronavirus pandemic in all key economies.
Covid-19 hits car demand
It had been estimated before the pandemic that international car sales were on track to reach 80 million. Although the latest figures show an improvement over previous estimates, the industry's economic woes continue and demand for new motor vehicles declined in 2020.
South America and Europe were among the hardest hit regions, and car sales in these regions contracted by about a quarter year-over-year.
The Chinese market recovers
After years of double-digit growth, China's economy began to lose steam. China was the largest car market by sales with around 19.8 million units in 2020. However, monthly car sales in China fell in free fall in February 2020 due to the coronavirus outbreak in the country and fears about an impending recession.
As a result of the successful containment measures, the market began to show signs of recovery in April, providing a lifeline for major manufacturers. By February 2021, the figures had increased by around four times the volume of February 2020.
