error:
Close
  • Latest
  • Trending
  • All
  • News
  • National News
  • International News
What are the Lingering Effects of COVID-19 on the Automotive Industry?

What are the Lingering Effects of COVID-19 on the Automotive Industry?

November 4, 2022
Formula 1 Saudi Arabian Grand Prix 2023 Gets Underway

Formula 1 Saudi Arabian Grand Prix 2023 Gets Underway

March 18, 2023
Automechanika Frankfurt, july,register,frankfurt,automechanika,september,offer,booking, expo,automechanika2024

Start Signal for Automechanika Frankfurt 2024: Secure Early-booking Discount Now

March 18, 2023
ADVERTISEMENT
Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

March 18, 2023
Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

Garage Gurus Announces 2023 Automotive Technician Scholarship Programme

March 18, 2023
Navistar Names Stefan Palmgren Executive Vice President, Production and Logistics

Navistar Names Stefan Palmgren Executive Vice President, Production and Logistics

March 18, 2023
KARREP, ANNIVERSARY, AUTO REPAIR, REPAIR INDUSTRY, AUTOMOTIVE,TECHNOLOGIES,SERVICE,

Happy First Anniversary to KARREP!

March 14, 2023
Artificial Intelligence Enabled Service Quality Inspection

Artificial Intelligence Enabled Service Quality Inspection

March 11, 2023
Lithium-ion Cell Selection for Battery Pack Assembly

Lithium-ion Cell Selection for Battery Pack Assembly

March 11, 2023
Ahead of the Curve in Preparing for Transformation

Ahead of the Curve in Preparing for Transformation

March 11, 2023
Rolls-Royce Motor Cars Opens A New Showroom in Riyadh

Rolls-Royce Motor Cars Opens A New Showroom in Riyadh

March 11, 2023
Bentley Motors Launches it’s 2023 Global Extraordinary Women Initiative

Bentley Motors Launches it’s 2023 Global Extraordinary Women Initiative

March 11, 2023
Nissan Unveils New Approach to Electrified Powertrain Development

Nissan Unveils New Approach to Electrified Powertrain Development

March 10, 2023
Battle Against Porpoising: What’s New in 2023 F1 Car

Battle Against Porpoising: What’s New in 2023 F1 Car

March 9, 2023
New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

March 9, 2023
Automotive industry, AI, production, industry, automotive, welding. vehicles, predictive maintenance, Arindham lahiri, ASDC

Artificial Intelligence in Automotive Industry and Future Skills

March 9, 2023
Job Fair Supports Growth of Automotive Sector job opportunities in Jharkhand

Job Fair Supports Growth of Automotive Sector job opportunities in Jharkhand

March 7, 2023
HELLA Manufactures 500 Millionth Accelerator Pedal Sensor

HELLA Manufactures 500 Millionth Accelerator Pedal Sensor

March 3, 2023
BMW Provides ADAC Driving Safety Training Courses

BMW Provides ADAC Driving Safety Training Courses

March 3, 2023
Aston Martin, oppertunities, Women's day, International Women's day, Leadership, Astin Martin Career, Astin Martin job for women, Women in Astin Martin, Formula 1, Clare Lansley, Women's team, Aston Martin Women's team,

Aston Martin Provide Opportunities for Women and Girls on International Women’s Day

March 3, 2023
World’s Fastest Accelerating Production Car Broke a Series of Speed Records

World’s Fastest Accelerating Production Car Broke a Series of Speed Records

March 2, 2023
  • About us
  • Contact us
  • Ads
  • Articles
  • Privacy
  • Terms
  • Newslettters
  • Login
  • Register
Thursday, March 23, 2023 | 2:07 PM
28 °c
Malappuram
28 ° Fri
29 ° Sat
29 ° Sun
29 ° Mon
29 ° Tue
29 ° Wed
KARREP
  • Home
  • News
    • All
    • International News
    • Motor Sport
    • National News
    Formula 1 Saudi Arabian Grand Prix 2023 Gets Underway

    Formula 1 Saudi Arabian Grand Prix 2023 Gets Underway

    Automechanika Frankfurt, july,register,frankfurt,automechanika,september,offer,booking, expo,automechanika2024

    Start Signal for Automechanika Frankfurt 2024: Secure Early-booking Discount Now

    Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

    Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

    Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

    Garage Gurus Announces 2023 Automotive Technician Scholarship Programme

    Navistar Names Stefan Palmgren Executive Vice President, Production and Logistics

    Navistar Names Stefan Palmgren Executive Vice President, Production and Logistics

    Rolls-Royce Motor Cars Opens A New Showroom in Riyadh

    Rolls-Royce Motor Cars Opens A New Showroom in Riyadh

    Bentley Motors Launches it’s 2023 Global Extraordinary Women Initiative

    Bentley Motors Launches it’s 2023 Global Extraordinary Women Initiative

    Nissan Unveils New Approach to Electrified Powertrain Development

    Nissan Unveils New Approach to Electrified Powertrain Development

    Battle Against Porpoising: What’s New in 2023 F1 Car

    Battle Against Porpoising: What’s New in 2023 F1 Car

    Job Fair Supports Growth of Automotive Sector job opportunities in Jharkhand

    Job Fair Supports Growth of Automotive Sector job opportunities in Jharkhand

    HELLA Manufactures 500 Millionth Accelerator Pedal Sensor

    HELLA Manufactures 500 Millionth Accelerator Pedal Sensor

    BMW Provides ADAC Driving Safety Training Courses

    BMW Provides ADAC Driving Safety Training Courses

  • Articles
    • All
    • News Feature
    Artificial Intelligence Enabled Service Quality Inspection

    Artificial Intelligence Enabled Service Quality Inspection

    Lithium-ion Cell Selection for Battery Pack Assembly

    Lithium-ion Cell Selection for Battery Pack Assembly

    New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

    New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

    Strategy Pillars for Business Success and Growth

    Strategy Pillars for Business Success and Growth

    The Best Modern and Technical Workshop Techniques

    The Best Modern and Technical Workshop Techniques

    Leveraging Connected Car Technologies to Improve Servicing Outcomes

    Leveraging Connected Car Technologies to Improve Servicing Outcomes

    ‘It is not enough you love your wife, you should tell her’

    ‘It is not enough you love your wife, you should tell her’

    Initial Inspection and Vehicle Handling of High Voltage Electric Vehicles

    Initial Inspection and Vehicle Handling of High Voltage Electric Vehicles

    PAVLO KULIUK Freelance Journalist Ukraine

    The Love of Ukrainians for Electric Cars is Stronger than War

    Union Budget 2023: How Automotive Industry Reacted to the Budget

    Union Budget 2023: How Automotive Industry Reacted to the Budget

    The Latest Edition of the Auto Expo – Components Show Saw its Largest-ever Attendance

    The Latest Edition of the Auto Expo – Components Show Saw its Largest-ever Attendance

    Asia’s Largest Automotive Show – Auto Expo 2023

    Asia’s Largest Automotive Show – Auto Expo 2023

  • Interviews
  • Editorial
  • Archives
  • Events
  • Magazine
No Result
View All Result
No Result
View All Result
  • Home
  • News
    • All
    • International News
    • Motor Sport
    • National News
    Formula 1 Saudi Arabian Grand Prix 2023 Gets Underway

    Formula 1 Saudi Arabian Grand Prix 2023 Gets Underway

    Automechanika Frankfurt, july,register,frankfurt,automechanika,september,offer,booking, expo,automechanika2024

    Start Signal for Automechanika Frankfurt 2024: Secure Early-booking Discount Now

    Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

    Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

    Dover Fueling Solutions Introduces DX Power to Integrate EV Chargers with Prizma

    Garage Gurus Announces 2023 Automotive Technician Scholarship Programme

    Navistar Names Stefan Palmgren Executive Vice President, Production and Logistics

    Navistar Names Stefan Palmgren Executive Vice President, Production and Logistics

    Rolls-Royce Motor Cars Opens A New Showroom in Riyadh

    Rolls-Royce Motor Cars Opens A New Showroom in Riyadh

    Bentley Motors Launches it’s 2023 Global Extraordinary Women Initiative

    Bentley Motors Launches it’s 2023 Global Extraordinary Women Initiative

    Nissan Unveils New Approach to Electrified Powertrain Development

    Nissan Unveils New Approach to Electrified Powertrain Development

    Battle Against Porpoising: What’s New in 2023 F1 Car

    Battle Against Porpoising: What’s New in 2023 F1 Car

    Job Fair Supports Growth of Automotive Sector job opportunities in Jharkhand

    Job Fair Supports Growth of Automotive Sector job opportunities in Jharkhand

    HELLA Manufactures 500 Millionth Accelerator Pedal Sensor

    HELLA Manufactures 500 Millionth Accelerator Pedal Sensor

    BMW Provides ADAC Driving Safety Training Courses

    BMW Provides ADAC Driving Safety Training Courses

  • Articles
    • All
    • News Feature
    Artificial Intelligence Enabled Service Quality Inspection

    Artificial Intelligence Enabled Service Quality Inspection

    Lithium-ion Cell Selection for Battery Pack Assembly

    Lithium-ion Cell Selection for Battery Pack Assembly

    New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

    New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

    Strategy Pillars for Business Success and Growth

    Strategy Pillars for Business Success and Growth

    The Best Modern and Technical Workshop Techniques

    The Best Modern and Technical Workshop Techniques

    Leveraging Connected Car Technologies to Improve Servicing Outcomes

    Leveraging Connected Car Technologies to Improve Servicing Outcomes

    ‘It is not enough you love your wife, you should tell her’

    ‘It is not enough you love your wife, you should tell her’

    Initial Inspection and Vehicle Handling of High Voltage Electric Vehicles

    Initial Inspection and Vehicle Handling of High Voltage Electric Vehicles

    PAVLO KULIUK Freelance Journalist Ukraine

    The Love of Ukrainians for Electric Cars is Stronger than War

    Union Budget 2023: How Automotive Industry Reacted to the Budget

    Union Budget 2023: How Automotive Industry Reacted to the Budget

    The Latest Edition of the Auto Expo – Components Show Saw its Largest-ever Attendance

    The Latest Edition of the Auto Expo – Components Show Saw its Largest-ever Attendance

    Asia’s Largest Automotive Show – Auto Expo 2023

    Asia’s Largest Automotive Show – Auto Expo 2023

  • Interviews
  • Editorial
  • Archives
  • Events
  • Magazine
KARREP
No Result
View All Result
  • Home
  • News
  • Articles
  • Interviews
  • Editorial
  • Archives
  • Events
  • Magazine
Home Expert's Take

What are the Lingering Effects of COVID-19 on the Automotive Industry?

In this review, Asim Inam, Automotive Industry Expert – Sales and Road Transportation, Automotive Skill Development Council India, briefly demonstrates various aspects of COVID’s spillover impact on the social and economic phases of the automotive industry.

KARREP by KARREP
November 4, 2022
Reading Time: 8 mins read
0 0
A A
What are the Lingering Effects of COVID-19 on the Automotive Industry?
ADVERTISEMENT

The effect of COVID-19 surfaced at every production stage of the automobile, starting from the factory and continuing through the showroom and into the workshops. The continuously rising demand for automobiles has not been met with an adequate supply of either new or used vehicles.

Although it will take some time before the full effects of COVID-19 on the automotive industry are understood, the immediate impact on key players in the industry, such as automakers, sales professionals, drivers, and repair workshops, is becoming apparent, and it is not all positive.

COVID-19’s Effects on the Auto Industry

Effects on Supply

Automobile parts like air brakes, frames, filters, hoods, and universal roof racks are a few examples of the numerous foreign components and accessories that fall short in supply that are widely used in automobiles. There have been claims of delays and cancellations of shipments across the globe as a direct consequence of the government’s decision to shut down the nation and limit access to its borders. Manufacturing automobiles is an impossible task without ready access to the necessary components.

The experts agree that this ongoing problem will not go away after the quarantine period is through. This problem will affect the auto industry for a very long period since it will restrict imports and exports and will take some time to develop components to keep up with the demand curve.

Effect on Production

Maintaining a productive work environment in the automotive industry is challenging due to the impacts of social isolation and lockdown, which have inhibited communication and movement.

You won’t be successful with only 99.99% of the system’s components; you’ll need the whole strength of the system. In addition, production is now unable to occur since there is an insufficient supply of the required components for the manufacturer.

Even if businesses are successful in meeting the need for specificity, the demand in the market for new vehicles will not be high enough to warrant the construction of new automobiles. As a result, all industrial operations may be suspended significantly.

Effects on Employment

Several companies, including Volkswagen and Honda, have published studies documenting the tremendous losses their companies have incurred as a direct consequence of temporarily being forced to shut down their manufacturing plants.

Volkswagen estimates that as a direct result of the pandemic, the company would suffer a weekly loss of US$2.2 bln in revenue. Because of these losses, businesses will be forced to reduce their workforces, resulting in a significant lack of available workers.

The massive financial reserves that significant companies have on hand enable them to ride out the storms of the economy. Still, the smaller suppliers that large organisations rely on will not do as well in this environment.

Considering the present status of the economy, if the lockdown is allowed to continue for more than two weeks, a sizeable portion of these suppliers may be forced to call it quits and cease all of their business activities. The landscape of available jobs will become much more unstable due to this new development.

Effect on Demand

It has come to everyone’s attention that favourable economic conditions are required to rise the demand for automobiles. The current state of the economy has dealt a blow that could prove fatal to the demand curves of the automotive sector.

People are losing their jobs and seeing their salaries decrease as a direct consequence of the economy’s continued decline. This, in turn, reduces the amount of money they are required to spend on automobiles and other items of a similar nature. COVID-19 may be responsible for a significant portion of the steep decline that has taken place in the automotive industry.

Effect on Electric Vehicles

It has been hypothesised that the automotive sector might undergo a paradigm change due to the introduction of electric vehicles. EV’s are the future of the automobile industry in terms of efficiency, ecology, and the ever-increasing cost of oil, which is a factor in their widespread use. On the other hand, considering the current state of events, there is a potential that the introduction of electric vehicles will be significantly delayed.

There is a little premium attached to the purchase of an electric vehicle due to the advantages offered by these vehicles. At this point, spending on a technologically sophisticated vehicle is not one of the highest priorities of an individual. Because of the historically low oil price in this century, the primary benefit of electric vehicles over traditional ones is no longer applicable.

Impact of COVID-19 on Car Manufacturers

Firstly, due to the rapid increase in COVID-19 cases government issued orders to manufacturers to temporarily cease manufacturing, resulting in a scarcity of vehicles just as demand began to surge again. This predicament was brought about as a direct result of COVID-19’s efforts.

As a result of delays in the supply chain of crucial components like computer processors, the release of several new models have been delayed or pushed back.

There has been a rise in the demand for new automobiles because people are opting to drive their vehicles rather than use public transportation to circumvent the laws that will become effective in 2020. Nevertheless, attempts to entice drivers who do not need to go anywhere by public transit have been fruitless.

Impact of COVID-19 on Drivers

Within the framework of the automotive industry, the impacts of COVID-19 on specific drivers are seldom discussed. The fact that COVID-19 has overall, resulted in safe driving practices being adopted is the reason for worry. Since the overall statistics of fatalities and injuries on the road witnessed a temporary fall due to stricter restrictions, there has been an uptick in reports of drivers engaging in unsafe driving behaviours.

In many parts of the country, the number of vehicles on the roads is far more than it was a few years ago, and drivers these days are more likely to be speeding or driving under the influence of alcohol. When there is a breach in security, defensive driving abilities are necessary. Drivers need to extra cautious on the roads until it can be determined whether or not the pandemic has been contained.

However, there is some good news for drivers: when they go to trade in their vehicles, many will find that the value of their cars has grown, which will have the pleasant side effect of positively impacting consumers’ wallets for a change.

Impact of COVID-19 on Automobile Sales

Even though the number of vehicles sold dropped in the year 2019 to 2020, most dealerships had trouble moving their inventory owing to a lack of available vehicles. This was a problem for most dealerships. Many auto dealerships have lately reported record profits as a result of changes in customer behaviour, and watchers of the industry expect a significant rise in vehicle sales over the next few years.

Therefore, many people are projecting that once the economy has recovered, there will be an increase in car sales that will bring them back to the levels they were before the epidemic and even surpass them over the course of the following several years.

The natural manifestation of this might be confusing, particularly in pre-owned automobiles. The value of old vehicles has considerably grown during the last several years. Even if this is excellent news for the automotive industry, it is not excellent news for those interested in obtaining a low-cost automobile.

Impact of COVID-19 on Auto Shops

The interaction with COVID-19 has proven challenging for the typical automobile servicing centre. Most companies have seen unprecedented levels of demand for their products and services; nevertheless, this rise in demand has usually been accompanied by challenges such as increased prices, shortages of components, and a lack of available staff.

The latter is partially due to the fierce rivalry for skilled workers among firms specialising in auto repair, which has led to a widespread lack of qualified staff in the field.

Instead of stepping into the uncharted territory of the used car market, an increasing number of people are looking for help in maintaining the automobiles they own. In addition, many forwardthinking practices have been implemented to guarantee that the customers and the staff are healthy.

Finally, it is essential to point out that the current trend toward disinfection has resulted in detailing shops throughout the country more than there have ever been before.

A significant number of auto body repair shops have sought to mitigate the adverse effects of COVID-19 by reducing their expenditures wherever it was practicable to do so. This may include looking for a new supplier of the necessary components, adjusting the emphasis of your promotion, or even boosting your prices. However, many businesses have discovered that they may save costs by revaluating their insurance plans. Convenient auto repair shop insurance is in great demand as a direct result of the fact that time is money in the automotive industry.

Conclusion

In a nutshell, these are how COVID-19 has affected the automobile business. Experts agree that organisations will feel these effects and, as a result, must adopt new approaches to industry to survive the present economic crisis and other factors.

Once we get over this epidemic, other sectors will return to normal, but the car industry will continue to face difficult circumstances for at least another couple of years. With everything going on, it’s impossible to know what the future holds.

Did you like this post ? Give a rating :
4.33

Your page rank:

ShareTweetShareSend
KARREP

KARREP

Magazine for Automotive Repair & Maintenance Industry. Promote, propagate, and foster new ideas and develop effective content for the auto repair and maintenance community.

Related Posts

KARREP, ANNIVERSARY, AUTO REPAIR, REPAIR INDUSTRY, AUTOMOTIVE,TECHNOLOGIES,SERVICE,
Editorial

Happy First Anniversary to KARREP!

March 14, 2023
Artificial Intelligence Enabled Service Quality Inspection
Articles

Artificial Intelligence Enabled Service Quality Inspection

March 11, 2023
Lithium-ion Cell Selection for Battery Pack Assembly
Articles

Lithium-ion Cell Selection for Battery Pack Assembly

March 11, 2023
Ahead of the Curve in Preparing for Transformation
Interviews

Ahead of the Curve in Preparing for Transformation

March 11, 2023
Battle Against Porpoising: What’s New in 2023 F1 Car
Motor Sport

Battle Against Porpoising: What’s New in 2023 F1 Car

March 9, 2023
New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape
Articles

New Age Car Workshops: Navigating the Evolving Vehicle Maintenance Landscape

March 9, 2023
Automotive industry, AI, production, industry, automotive, welding. vehicles, predictive maintenance, Arindham lahiri, ASDC
Expert's Take

Artificial Intelligence in Automotive Industry and Future Skills

March 9, 2023
The Best Way to Manage Workshops
Editorial

The Best Way to Manage Workshops

February 4, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ADVERTISEMENT
KARREP

© 2022

IMPORTANT LINKS

  • PRIVACY
  • TERMS
  • CAREERS
  • CONTACT

CONNECT WITH US

  • Login
  • Sign Up
  • Cart
  • HOME
  • MY ACCOUNT
    • Account details
    • My Files
    • My Orders
    • My Courses
    • KARREP Premium
  • CATEGORIES
    • News
    • National News
    • International News
    • Archives
    • Editions
    • Events
    • Expert’s Take
    • Articles
    • Interviews
    • Videos
  • OFFICE CONNECT
    • Magazines
    • Subscribe
    • Privacy
    • Terms
    • Careers
    • About us
    • Contact us
© 2022 . All rights reserved
KARREP by Hamcore Private Limited

Welcome Back!

Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
Sign Up with Linked In
OR

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?