Global Auto Sales Drop 22% Amid Pandemic 🚗

IHS Markit is projecting that global auto sales will fall 22 percent this year due to the coronavirus pandemic. CNBC's Phil LeBeau reports.

Big discounts, low financing rates and states loosening restrictions on auto dealerships are assisting in a sales rebound heading into the end of April, according to J.D. Power.

Sales this month are still expected to be down about 50% compared with April 2019. However, the decline is far less than previously expected with the coronavirus pandemic wiping out the majority of sales for the month, the firm said Wednesday.

“We are now firmly in a period where we see sales of new vehicles start to recover,” Thomas King, president of the data and analytics division and chief product officer at J.D. Power, told CNBC. “We’re still severely depressed in terms of vehicle demand, but the good news is we have turned the corner in terms of the declines.”

King said 0% financing offers, big incentives from automakers and all states now allowing at least online vehicle sales all contributed to the rebounding sales, which are up 11 percentage points from the end of March.

J.D. Power reports 24 states, which represent 44% of 2019 retail sales, allow dealership sales operations to remain open. The other 26 states, which represent 56% of retail sales, are allowing only online or remote sales.

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