With the spread of the epidemic in Europe, the United States and other places, many car manufacturers around the world announced that they would stop production. Panel manufacturers received notices from customers to cut orders or even suspend shipments. Small and medium-sized panel manufacturers bluntly stated that their orders freeze in late March. With the expansion of global closed management, which lasted until April, the market survey agency Omdia estimated that vehicle panel will show a decline of more than 8.3%, or even 13%, a negative growth for two consecutive years.
In February, China's closed management impacted the automobile supply chain. Although China's general automobile production has resumed, large-scale production shutdowns have occurred in other regions, especially in Europe, North America, and India. Small and medium-sized panel manufacturers said that because of the cessation of production in many car factories, they saw orders for vehicle panels freeze in late March, and they also received notifications from customers that orders were reduced or delayed in early April, and some orders even returned to zero.
Omdia's chief analyst said that there were more than 100 automobile manufacturers in March, due to closed management, or parts shortage, lack of work and many other factors and announced the suspension of production. With the increase in the resumption rate of the supply chain, panel supply has returned to normal in March, but downstream orders were frozen in March.
From various regions, China (the global passenger car production ratio is about 27.3%) has gradually increased the recovery rate. In March, more than 90% of the factories have resumed production, but the output has not yet returned to the full output level, because the supply chain and The labor force is not yet in place, so the actual capacity utilization rate is still estimated at 40%.
Europe ’s global passenger car production accounted for about 23.7%, including large car manufacturers such as Fuchs, BMW, Mercedes-Benz, Baoshi Citroen and Fiat, Toyota, Nissan, Renault, etc., announced in mid-March that the European factories will be temporarily closed for about 2 weeks Until early April. If the shutdown continues until mid-April, it is estimated that the production capacity will be reduced by approximately 1.5 million vehicles, and if it continues until the end of April, the impact will be as high as 2.2 million vehicles.
The three major automakers in Detroit, General Motors, Ford and Fiat, will be closed from March 18, and production is scheduled to restart in early April. It is estimated that production will be reduced by more than 800,000 vehicles. However, it is expected that the suspension of production will continue, and some automakers have announced that they need to invest in production of respirator and masks in response to the outbreak.
India ’s passenger car production accounted for about 4.6% of the market. Mercedes-Benz and Ford have temporarily closed their local factories. With the announcement of 21-day national closed management by Indian Prime Minister Modi, local Tata cars and Hyundai, Suzuki, Honda and other car factories have also closed. Announced suspension of production operations, it is estimated that production will be reduced by about 300,000 units.
Omdia's chief analyst said that from the demand side, China's car sales in February decreased by as much as 80% compared with the same period last year. Production and consumption activities in March gradually recovered, but the estimated annual sales decline rate is still more than 35%. Sales in other regions will be severely impacted by the epidemic. Under closed management, the depots in various locations that have been closed successively by car manufacturers will only maintain part of their maintenance services. Italy's car sales in February decreased by 9%. In March, the epidemic expanded, and the US car sales in March are estimated to be significantly reduced by 25-40%. Continued expansion of the stay-at-home policy and the closure of retail locations will further shrink sales.
