Worldwide car sales are expected to drop 2.5% in 2020 as the global coronavirus outbreak weighs on demand and disrupts supply chains, according to a report from ratings agency Moody's.
Previously, a 0.9% decline was expected. Sales are expected to rebound slightly in 2021, growing 1.5%.
In China, the world's largest auto market, car sales are expected to drop 2.9%, more than expected.
"Cautious consumers are steering clear of crowded areas, including auto dealerships, while corporate demand for vehicles is weakening as broader economic uncertainties cause companies to scale back capital spending," Moody's analysts wrote in the report.
Demand for new cars in Western Europe will take an even bigger hit and is expected to fall 4%, according to the Moody's report. In the United States, car sales are expected to fall by 1.2% this year, and another 0.6% in 2021. Japan is the only market in which car sales are expected to grow, albeit only a modest 0.4% in 2020.