The global auto industry continues to navigate a challenging
supply chain environment as well as lingering COVID-19 impacts.
While ongoing COVID lockdowns in areas of mainland China are having
a material impact on production within the country and some
surrounding markets, S&P Global Mobility (formerly IHS Markit |
Automotive) analysts are also seeing a measure of stability in
other regions relative to some of the more meaningful downward
revisions made in recent months.
To be sure, COVID conditions and the general state of the supply
chain will remain dominant factors influencing production in the
near-term, along with the macro implications of the ongoing
Russia/Ukraine conflict, yet automakers and suppliers continue to
adapt to the changing landscape.
The May 2022 light vehicle production forecast update from
S&P Global Mobility reflects noteworthy reductions for Greater
China and Japan/Korea due to the aforementioned COVID lockdowns in
China impacting production both directly and through supply chain
interruptions. Conversely, it is important to note upward revisions
for South Asia and Europe on somewhat improved conditions in those
markets relative to prior expectations.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.