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Brexit Could Cut Global Car Sales by 2.8 Million Units
Great Britain’s decision to leave the European Union will trim global passenger vehicle sales by more than 2.8 million units through the end of next year, market researcher IHS Automotive predicts.
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Great Britain’s decision to leave the European Union will trim global passenger vehicle sales by more than 2.8 million units through the end of next year, market researcher IHS Automotive predicts.
IHS expects a global auto market of 89.8 million units in 2016, about 200,000 fewer than it forecast before the British vote. The firm also has trimmed its sales forecasts by nearly 1.3 million units for 2017 and almost 1.4 million units for 2018.
The U.K. will suffer most of the decline, according to IHS. It now expects the British car market will grow only 1% this year, then shrink over the next two years as domestic demand drops. The country’s Society of Motor Manufacturers and Traders has cautioned previously that the British market was likely to plateau after years of steady expansion.
England exports about 80% of the vehicles it makes, mostly to the EU. But carmakers have warned that if the EU imposes new tariffs on British-made vehicles, they may relocate production to EU member states.
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