Global sales of sedans and SUVs will also decline slightly in 2019 as global economic growth slows. Since the 2008 financial crisis, the days of easy profitability for global automakers are coming to an end.


(Sina Auto reported on January 5) As global economic growth slows, global sales of sedans and SUVs will also decline slightly in 2019. Since the 2008 financial crisis, the days of easy profitability for global automakers are coming to an end.


On top of that, sales in China, the world's largest auto market, have softened. In 2018, sales in the Chinese auto market are expected to be around 28 million units. Due to various factors such as the withdrawal of the purchase tax, the uncertainty of import tariffs, the continuous increase of refined oil prices, and the early implementation of the National VI emission standards in some regions, consumers are in a wait-and-see state.


In 2018, car sales in the Chinese market are expected to drop by 3%, which is the first real negative growth in the Chinese car market in more than two decades. But it's a modest start for the major automakers, and things will be more challenging ahead. Consulting firm ZoZo Go predicts that China's auto market will fall by 5% in 2019.


Investment bank Morgan Stanley expects global auto sales to fall 0.3 percent to 82.1 million in 2019. Germany's Duisburg-Essen Automotive Research Center forecasts that new vehicle sales will be just over 82.9 million. And Fitch Solutions expects some sales growth, but only a tiny 2.0%.


In Europe, governments are exerting enormous pressure to improve the fuel efficiency of gasoline-powered vehicles. That means automakers will spend more to avoid financial penalties, with little chance of a return on investment. The Belgrade Bach Centre for Automotive Management (CAM) predicts that the glory days of lucrative car companies are over.


IHS predicts that European new car sales will increase slightly by 1.3% in 2019, while LMC's forecast is 0.9%. UBS is more pessimistic, predicting that overall new car sales in Europe will increase slightly by 0.6%, while Western Europe will see a decline of 0.9%.


For the performance of the U.S. new car market in 2019, a number of agencies including Edmunds predict that sales will be between 17.8 million and 16 million, which means that it is likely to fall below 17 million.


“Global automakers have had their best years in automotive history since 2011. Profits for the 17 most important automakers grew from €65 billion ($74 billion) in 2011 to €1,060 in 2017 billion euros (about $121 billion)," CAM said in a report. "However, the 'boom years' of the auto industry are now over, and profits and returns will plummet in the coming years. In particular, new players from the tech space will increasingly challenge established automakers with new business models in the future. business."