Marrakesh, Mar. 23 (Maroc-Actu) –
Global car registrations will decline by up to 2% in 2022 due to continued global supply disruptions from Russia’s invasion of Ukraine, according to a report by S&P Global Ratings.
The rating agency has changed its forecast for sales in the sector in light of the study published by RatingsDirect, with previous estimates predicting a rise in global sales of between 4 and 6% this year.
“The consequences will likely be more pronounced for the European region and could spread to other markets in the event of a protracted dispute,” said Vittoria Ferraris, credit analyst at S&P Global Ratings.
In particular, the disruption in the supply of key auto parts in the region, including cable manufacturing in Ukraine, potential shortages of materials such as palladium, and rising prices for steel, copper, aluminum and nickel are key risks for the industry in 2022.
In addition, the war in Ukraine could also have repercussions on external dependence on raw materials such as gas and oil.
“In these market conditions dominated by supply issues, we see some short-term credit implications for global automotive producers and suppliers,” Ferraris said.
“The rating impact will depend on the wiggle room built into the credit metrics. We expect automakers to have a more comfortable rating space than auto suppliers, but any rating action would be selective,” he concludes.
Still, increased pricing pressure is unlikely to affect regulation-driven electrification, with electric vehicle sales expected to continue accelerating this year to reach 15-20% of the global fleet by 2025.