How has the auto industry survived the pandemic

Auto industry

We know that the global auto industry faced vulnerable effects of the COVID-19 pandemic since its inception. The industry experienced a standstill for a period of time with control measures placed by Governments to control the virus spread.

However, the large-scale global vaccination rollouts saw an upscale turn in the industry’s performance over the past few months. Success stories of companies are too being heard during the pandemic era. One such was Toyota being able to overtake Volkswagen as the bestselling automaker in 2020 for the first time in 5 years. Toyota attributed its success to implementing COVID-19 preventive measures and cooperative working patterns between suppliers and dealers.

But the recovery of the auto industry as a whole cannot be achieved easily. Let’s look at some of the global companies’ strategies to survive the pandemic.

Time of electric automobiles

The automobile sector was readying itself to reduce effects of the environmental pollutions even before the pandemic. So, it is no surprise that 2021 saw automakers presenting over 100 models of electric cars as a timely solution. As a result, the global electric vehicle market size during post-COVID-19 is expected to reach 4.8%.

Tesla already delivered more than 88,000 units in the first quarter of 2020 alone. And they have been in continuous operation and making deliveries in the U.S. All other automobile companies are also following Tesla’s suit at the moment.

New strategies by automobile brand agents

Governments, especially in Asia and Africa, imposed an import ban on vehicles, severely affecting automobile company revenues. However, as a mode of survival, these companies then started pre-owned vehicle showrooms that purchased vehicles of any brand, providing their certification to the purchased vehicles upon inspection. This added value to vehicles and helped them to be sold to customers as per their requirements. This new norm went onto becoming a means for automobile businesses to survive until the import ban on vehicles is lifted. The focus of all the brand agents is increasing the company revenue via strengthening vehicles’ maintenance services.

Car shopping online

It might sound a bit out of place but car dealership is now more preferred online than offline. COVID-19 forced dealers to be very creative over the past one and half years. And this led to dealers offering even 24-hour vehicle loans to interested buyers. The new norm is expected to increase and possibly replace any in-person dealings that can get a bit tiresome at times.

The automobile world is changing as you are reading this article. And it is going to be an interesting one during the post-pandemic era.

Do write to Navotar and let us know the new changes that you are seeing happening within the automobile industry.


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