The Future of the Auto Industry
Like every other industry and sector, the auto industry has been shaken to its core by the Covid 19 crisis. Consumers are not buying cars; garages have had to close, and factories have had to cease production. In the United States February saw the biggest decline in sales on record at nearly 79%. Analyst, factory managers, CEO’ s and garage owners all have to try and adapt and prepare for the future. But will a post covid future look like for the auto industry?
The auto industry is eagerly awaiting a return to normal trading, but analysts are unsure of when this may return to some semblance of normality. Analysts are split on this as many debates on whether there will be a V shaped recovery with a quick return to normal purchases while others wonder whether recent increase in unemployment will have a protracted affect on sales lasting years. The only thing analysts agree on is that sales are expected to take a severe decline for the rest of this year.
Recent public health notices regarding public transport may resulted in a reduction in usage by the general public. People are driving instead of using public transport where possible. This can be a positive for garages everywhere. As cars may have been left sitting in driveways for a while this increased usage could result in increased business in many local garages.
Many analysts believe that major manufacturers will continue to invest in new technology with the hope that new electric and hybrid cars could be the saviour of the industry. It’s expected that in the coming years industry leaders will push these advancements. We can expect automatic transmission and electric cars to become the norm in the near future following the pandemic.
This pandemic has taken everyone by surprise, but governments everywhere are offering their support. If you are a garage owner see what support the local government can offer you and try and prepare for increased demand as people get back on the road. Follow leading auto industry news as all these conditions are changing by the day and a new situation may emerge.