According to foreign media reports, Moody's said that the outlook for the global automotive industry will remain stable in the next 12 to 18 months, in part because of the growth in car sales in China, India and Europe. However, the increasingly tight trade situation and tariff threats may affect car sales next year.

The credit rating agency had predicted that global light vehicle sales this year and next year will rise by 1.5% and 1.3% respectively. However, continued trade and tariff disputes, rising interest rates and rising fuel prices are likely to result in lower car sales next year. At the same time, automakers must continue to invest heavily in alternative fuels and other technologies to meet environmental regulations and to withstand new competitors and technology disruptions.

Moody's said that the recent major automakers have issued profit warnings indicating that the auto industry will face greater downside risks in the coming year. The Chinese auto market is relatively stable and is what Moody's calls the key to the global automotive industry. Although global car sales are expected to decline slightly next year, Moody's believes that car sales in the Chinese market will still grow by 2% or more next year. It is expected that the increase in sales in the Chinese market will offset the decline in sales in the US. Economic growth in emerging auto markets such as Russia, India and Brazil will either remain strong or rebound in the coming months.

According to Moody's report, stricter emission regulations are one of the factors that drive for the loss of cash resources. When US President Donald Trump announced the suspension of the Obama economy's fuel economy standards, the US state governments and other overseas governments are setting their own standards. Many automakers have to invest in new electric vehicles, and they have to deal with the rising stars from Tesla and Chinese car companies.

Moody's said that financial companies with good financial conditions will be able to better cope with the additional consumption of resources, but the increase in spending will put more pressure on automakers with lower profit margins.