The pace of the decline in global auto sales moderated in May as purchases posted a ‘mere’ 35% y/y drop.
On a month-over-month basis, global sales accelerated by 40% following April’s record 46% y/y decline.
Parts of the world are benefiting from post-pandemic pent-up demand as their economies (and dealerships) re-open.
This notably includes China where sales exceptionally sit in positive territory (7% y/y), while other parts of Asia, Europe, and the US and Canada are seeing surges in sales activities, albeit still below pre-crisis levels.
There remains considerable uncertainty around the strength and duration of this near-term post-pandemic rebound before fundamental economic drivers take over.
For most countries, this suggests a multi-year recovery as elevated unemployment dampens consumption.
While aggregate auto sales have reversed direction in May, some countries continue to face pandemic outbreaks to the continued detriment of auto sales.
Notably, Latin America has yet to enjoy a rebound, along with other frontier economies such as India.
** Stay tuned, a more detailed article will follow shortly **