Stakeholders to Focus on Resource Optimization, New Growth Segments and Cost Rationalization to Overcome Slowdown
The mushrooming coronavirus outbreak in the central Chinese city of Wuhan prompted the World Health Organization (WHO) to declare a global health emergency in late January. The coronavirus outbreak isn’t just a massive health crisis; it’s an economic one as well. If the pandemic is not contained to a large extent by April, the drop in consumer demands and industrial production could potentially push the global economy into a recession in 2020.
The coronavirus outbreak has heavily impacted the manufacturing industry. OEMs and parts suppliers have yet to return to full production capacity. Consequent delays in delivery might impact the market at multiple levels from postponed new car model launches, shattered supply chains, financially drained SMEs, and dampened vehicle sales in Q1, 2020. The effects will spill over into Q2 as well, with unfulfilled order deliveries due to ongoing production slowdowns. This situation is set to exacerbate the numerous challenges already facing the auto industry, including tougher CO2 emissions standards and higher investments in new technologies. The study sheds light on the impact of the pandemic on the global light vehicle production of global OEMs across key regions such as NA, Europe, APAC, China and India in three different scenarios.
As the effects of the pandemic start to wane and the industry begins to recover, OEMs will explore various options to drawback consumers and offset the drop in sales. The study deals with the impact across different regions and the top global OEMs. OEM wise impact analysis across different regions based on sales and production dependency along with forecast in various post-COVID-19 scenarios have been covered in the study.
The study also covers the impact of the pandemic and new opportunities created on other mobility verticals such as shared mobility, electric vehicles, connectivity solutions, aftermarket, and vehicle leasing. The study highlights the unit shipments and growth rates across different verticals along with opportunity areas in each of these verticals. Personal mobility modes will make a strong comeback. The demand for micro-mobility solutions, in particular, will surge. Micro-mobility solutions are easy-to-use and ideal in congested city environments. In the current context of COVID-19, these single or double seaters, like mopeds and scooters, offer riders better control over their health & wellness. Automakers are likely, therefore, to explore the potential of this sector as they attempt to draw up blueprints for a post-corona virus scenario.
Companies are stepping up to the challenge created by the coronavirus outbreak. They are supporting governments in developing and supplying various health and wellness solutions, which has been covered in the study as well. This massive crisis is going to change the outlook for auto manufactures in the near future as the focus is likely to shift towards health and wellness solutions in vehicles.
The study includes a comprehensive scenario-based analysis centered on the current world scenario on key industries like Automotive across various markets to enable clients to survive the present to thrive in the future. At the same time, we recognize it is important for our followers to remain on top of their strategic initiatives.
Research Scope
The aim of this study is to assess the growth impact of the COVID-19 pandemic on the global automotive industry.
Strategic Imperatives:
The global COVID-19 pandemic and the subsequent recession like global economic slowdown has left governments and markets stumbling in directionless chaos and uncertainty. In the midst of a lurking global recession catalyzed by the uncontrolled spread of the Coronavirus, companies, and leaders invariably fall short of prompt decision making subsequently missing out on potential opportunities during such times of great distress. Therefore a comprehensive scenario-based analysis was conducted, centered on the current world scenario on key industries like Automotive across various markets to enable clients to survive the present to thrive in the future.
Key Issues Addressed
- How will the current market turmoil impact business planning?
- What are the scenarios individual markets (Europe, North America, APAC, Middle East, and India) that I need to be cognizant of as realistic market change to strategy is made?
- What are the best practices and recommendations for business survival?
- Do growth opportunities still exist in the market and if so, what are they and how can my organization leverage them?
- What strategies are key market participants currently employing?
