Supply chain bottlenecks and record inflation have made it even harder for automakers to sell vehicles in 2022 than they were in 2021.
With rising costs and low inventory, the auto industry is expected to see a $200 billion drop in sales revenue this year, according to data presented by AugustaFreePress.com.
The 2015 Financial Year’s Revenue Was Below That of 2014
Car buyers around the world have had to contend with high prices and low availability for the past three years due to a variety of factors. When the COVID-19 pandemic first hit, it slowed production and altered consumer habits. Yet the difficulties of 2022 were no less severe.
As the conflict in Ukraine continues to disrupt supply chains and spur record inflation, it threatens to dampen demand even after shortages have been alleviated. Car buyers in the United States are also having a tough time of it as increasing prices and limited supplies have made it next to impossible to purchase a brand new vehicle. As a result, worldwide income from sales of automobiles fell below 2014 levels.
Car sales worldwide brought in $2.08trn in 2018, up significantly from $1.67trn in 2020 but still lower than pre-COVID-19 levels, according to a survey by Statista. Nonetheless, Statista forecasts that sales will fall 9% year-over-year to $1.89trn in 2022 and hover around that level in the following year. Because of this precipitous decline, the market as a whole is now eight years behind where it was in 2014 when the auto industry made about $1.99trn from car sales.
This year, worldwide product sales have dropped by 6.5 million units.
The auto industry is struggling to meet consumer demand for new vehicles. The result has been record-breaking profits for car dealerships, who have had to significantly mark up the prices of all remaining models.
However, annualized sales of automobiles are at a record low. Statista predicts that worldwide sales of care products will total 67.3 million in 2019, which is 6.5 million fewer units than in 2021 and 2.6 million fewer than in 2013.
Sales of minicars and full-size vans are expected to fall by 12% and 10%, respectively, this year. It is anticipated that the remaining 80% of the market will decline by around 8%.
In 2022, Statista predicts that Toyota will still have a 9.6 percent share of the global auto market. Volkswagen AG was the year’s second-largest automaker, with a 7.2% share of the market, despite production halts caused by the conflict in Ukraine and supply chain bottlenecks. The next largest competitor, Ford, has a 7.1% share.