Morgan Stanley expects the coronavirus outbreak will ship U.S. auto gross sales down 9 % this 12 months, it stated in an investor notice on Wednesday. Earlier than the outbreak, analysts had anticipated a modest decline of 1-2 %.

Individually, researcher LMC Automotive stated it expects considerations over coronavirus in the USA and different nations might drive international car gross sales this 12 months down four % to 86.four million, from 90.three million in 2019. LMC beforehand had anticipated comparatively flat international gross sales of 90.1 million.

In the USA, Morgan Stanley auto analyst Adam Jonas wrote that "demand shock" triggered by the unfold of the virus might trigger shoppers to delay massive purchases akin to new automobiles.

He predicted U.S. gross sales might drop to 15.5 million autos, from 17.1 million in 2019.

LMC dropped its U.S. gross sales forecast to 16.5 million.

Automakers are on account of report first-quarter gross sales in early April.

The Nationwide Car Sellers Affiliation in early January had predicted a slight...