Global Automotive Industry Outlook Stable Despite Supply Chain Constraints, COVID-19 Risks

KUALA LUMPUR, Dec 9 (Bernama) -- The outlook for the global automotive industry remains stable for the next 12 to 18 months due to forecast sales recovery, said Moody’s Investors Service. Vice-president - senior credit officer Matthias Heck said the outlook for the global automotive industry is stable based on Moody’s forecast of a 6.2 per cent increase in light vehicle unit sales for 2022, following a tepid recovery in 2021. “Automakers will be able to mitigate ongoing supply chain constraints by improving mix and raising prices, and we expect supply problems to abate, with volume recovering in the second half of 2022,” he said in a note Thursday. Heck said automotive markets in China will support the global recovery in 2022, but Europe and North America would recover further by low to mid-single-digit rates. “However, the global automotive industry’s outlook could be challenged by uncertainties in the global economy, supply chain constraints and risks posed by the pandemic,” he added. -- BERNAMA