Global credit rating agency Moody’s Investors Service on Monday said that the outlook for the global automotive sector is negative for the next calendar year: 2020.
In a research report titled ‘Automotive manufacturers and parts suppliers: Global 2020 Outlook,’ the agency said that the negative outlook is driven by its expectation that there would be “a continued decline in global light vehicle sales.”
The agency said that it forecasts a 0.9 per cent decline in light vehicle sales following a projected 3.8 per cent decline in 2019. According to Moody’s, the primary reason for sluggish sales includes global political risks, technological changes and environmental regulation.
“Demand remains constrained by a weakening macroeconomic environment and the continued uncertainty over the UK’s plans to exit the EU,” it said.