The start of 2020 saw a massive drop in vehicle sales, a double-digit percentage fall due to Covid. So for example, in the first two quarters an average of 35% fewer vehicles were sold in Europe than in the equivalent quarter in 2019.\u00a0<\/span><\/p> The world\u2019s largest automotive suppliers generated 11% less turnover than in the previous year.\u00a0<\/span><\/p> Operative profit also fell substantially and stood at around -8% in the second quarter. OEM business development showed a similar picture during the same period. Since autumn 2020 we have been experiencing marked signs of recovery in the supplier industry. Both turnover and profits were gaining considerable momentum by the end of the year; some profits with a double-digit percentage. We are expecting a recovery for the period between 2023 and 2026, reaching the levels of the pre-crisis years 2018 and 2019, boosted by the growth in South Asian and South American markets. China and Europe will remain the largest markets by far, but with substantially smaller growth rates.<\/span><\/p> All this has sharpened the trend towards a two-tier society. The big players are quickly returning to their previous profitability and good growth rates, while the mid tiers get left behind. <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Dr. Jan Dannenberg<\/p>\n Executive Partner<\/p>\n jan.dannenberg@berylls.com<\/p>\n <\/div>\n Dr. Alexander Timmer<\/p>\n Partner<\/p>\n alexander.timmer@berylls.com<\/p>\n <\/div>\n Insight download and author information\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1. The Covid-19 year<\/h5><\/a>\n <\/div>\n