Auto sales drop in March as coronavirus hits demand, output

Global automotive sales tumbled in March in the wake of shelter-in-place orders, production halts and slowdowns, and economy turmoil as consumers worldwide began to take the full brunt of the coronavirus pandemic. 

Hyundai’s U.S. sales alone dropped 43 percent compared to the same month a year ago. The South Korean automaker reported provisional global sales of 308,503 vehicles for March a — 21% slide to an 11 year-low for the month — as the outbreak battered demand and forced several of its overseas plants to suspend production.

Hyundai closed its Montgomery, Alabama, assembly plant last month after an employee there tested positive for the disease, and also suspended production at plants in the Czech Republic and India over the virus. Plants in South Korea are, however, running at close to full capacity.

Credit ratings agency Moody’s Investors Service said in a report last month it expects global sales for the auto industry to slide 14% this year. It placed the ratings of Hyundai and its affiliate Kia Motors Corp on review for a possible downgrade.

Reuters reports contributed to this story, including reporting by Joyce Lee and editing by Edwina Gibbs. We will continue to update this story as more automakers report their March and first-quarter sales results.