The global market for Commercial Vehicles is expected to slump by -17.8% in the year 2020 and thereafter recover and grow to reach 29.1 million units by the year 2027, trailing a post COVID-19 CAGR of 4.4%, over the analysis period 2020 through 2027. The logistics industry has suffered the biggest losses amid the COVID-19 crisis. The industry has been boxed in with challenges ranging from lockdowns, transport restrictions, & supply chain disruptions. Logistics service providers are witnessing their revenues slip into negative as fleets idle & liquidity dries up. Cancellation & fleet expansion plans are taking their toll on the commercial vehicles market which is expected to slump by -17.8% in the year 2020. Global automobile production is expected to register a significant decline in 2020, as auto plants across the globe suspended production temporarily during the first half of the year, to curb the spread of COVID-19 and improve safety protocols to safeguard employees against the pandemic. The halt in production amid the outbreak and stringent measures to contain the pandemic hold negative implications for the global automobile industry that is forecast to witness a dramatic decline of 20% in vehicle production in 2020. Going forwards, recovery in automobile production growth is expected to vary by region across the globe, guided by differences in vehicle sales potential and recovery in end-use sectors.

The industry is further expected to show a slow recovery as key indicators such as economy growth, and purchasing managers' index for the service sector display sluggish gains in most markets indicating a long way to go to pre-COVID-19 levels. Amid the surge in COVID-19 cases, new vehicle sales during the first half of 2020 took a major hit as battered consumer confidence and rising unemployment rates reduced consumer spending on big-ticket items such as passenger cars. The complete annihilation of the logistics and transportation industry continues to impact sales of heavy vehicles and commercial vehicles. Trade, travel restrictions and disruptions in supply chains impacted logistics, cargo and freight transport. The COVID-19 outbreak and associated restrictions on travel and movement severely impacted transport connectivity across regions. The pandemic prompted various countries to close borders for passenger transport as well as impose varying bans on freight transport. The overall impact of the COVID-19 pandemic on the freight operators around the global is likely to be severe. To contain the spread of the virus, countries all over the world, restricted the passenger and freight transport along their borders, thus disturbing the supply chains. Faced with losses and rapidly deteriorating liquidity, logistics companies are cancelling and postponing fleet expansion plans. The industry is anticipated to witness sluggish recovery in Europe and North America in the coming months. China that first witnessed the outbreak of COVID-19 has restarted majority of its automobile manufacturing plants and estimated a loss of only 12% in terms of overall sales. On the other hand, leading players including Volkswagen, Mercedes and BMW are facing remarkable drop in sales and suspended production. The industry in these regions is lobbying for financial rescue and support from the government to survive the crisis.

COVID-19 disruptions of unparalleled magnitude along with mandates like social distancing and stay-at-home orders have brought various changes that are bound to impact majority of industries, including commercial trucks. The pandemic affected consumer demand patterns, movement of goods and materials, available capacity and the supply chain related to the commercial truck industry. COVID-19 related disruptions and transport restrictions made majority of companies to struggle with capacity, business continuity and bottom lines. The recovery is expected to depend on speedy supplies and shipments along with resumption in business activity across areas that have successfully controlled the pandemic. The outbreak has also led to a number of positive developments in the global commercial truck industry that are slated to benefit participants altering their strategies accordingly. Currently, the market is witnessing challenging times due to the COVID-19 pandemic because of which global supply chain has been disrupted in most industries around the world. The impact of COVID-19 outbreak is likely to be intense on the medium/heavy duty vehicles market in the US and Europe, due to the strong decline in freight demand on account of strong economic contraction and decline in industrial production activity. Growth of industrial activity, demand from logistics industry, and the level of construction activity are key factors impacting growth in the commercial vehicles market. The global commercial vehicles industry is facing challenges due to the ongoing coronavirus outbreak, and it could take a couple of years before sales volume reach the 2018-19 level when the industry recorded sales of over a million units.