We’ll begin by saying this: no one has a crystal ball. While we can investigate what’s happened so far and the context of the industry before COVID-19 to draw predictions, the true lasting effects on the industry are unlikely to be known for a long time. Our goal is to discuss what’s happened so far in the industry and how pre-existing trends may be an indication of where the industry is going at large.
In the US, manufacturing has remained in contraction through the summer and automotive sales have fallen over 25% year over year for June. Cox Automotive analysts say June’s new-vehicle sales were down 27% compared with June 2019- although June sales were marginally better than May.
In global survey results from Informa Tech Automotive Group, 57% of those polled expect COVID-19 to quicken the pace of and rate of consolidation in the industry. 85% think COVID-19 will have a lasting impact on the usage of shared mobility.
Dealership consolidation was already a clear trend in the US with more dealerships sold every year since 2013. While we expect this trajectory to continue, the impact of COVID-19 may dictate which dealerships are selling. Those who sell niche or luxury vehicles or who don’t have a competent online shopping platform may experience the pinch sooner than others.
On the side of innovation, we expect remote driving and autonomous driving technology to evolve rapidly in the years to come with a greater demand for remote options across industries. Shared mobility is likely to take a breather in rapid progress with many preferring private modes of transportation now.
How do you think COVID-19 will impact the automotive industry? Leave a comment below!
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