Last year was unprecedented in many ways. It was indeed a year of revelations and learnings. The coronavirus pandemic ruffled the entire economy and the automobile industry was no stranger to the same. The entire automotive market was seen to be encountering turbulence from all ends.
While the auto industry has been tackling the corona induced slowdown blues and is still to completely recover from the downturn, we can clearly see the signs of a slow yet steady rebound of the sector.
Getting back on track
It has been noticed that during the initial days of COVID i.e. Feb 2020, automobile sales had dropped significantly. By April 2020, the sales saw a dip of 80% in Europe and 47% in the United States.
But at the moment, the wobbly market seems to be slowly progressing towards a state of equilibrium and the automobile sales have been picking up momentum.
Though travelling with face masks has become our second nature, people are still reluctant to use public transportation. A simple sneeze from a fellow passenger is enough to sow seeds of doubt and repel everyone. This behaviourism pattern has become our standard response mode and understandably so.
Shared rides are equally spine-chilling as commuting by buses and trains. As a result, more consumers prefer road trips over public transit and air travel resulting in more vehicle sales this year. People have begun to realize the significance of owning private cars as never before which consequently has stimulated the demand for the automobile market. Correspondingly, car dealerships are seen to be getting more and more active nowadays.
The picture is improving and the automobile industry’s future conclusively looks brighter with the release of new car models and technological advancements in Electric Vehicles (EVs).
Crisis management mode “on”
The automotive industry as we know it is habituating itself to the new post Covid 19 era. Besides getting itself out of the corona induced plummet, the entire auto business sector is also rethinking the strategy and pivoting accordingly for sustainable growth. Automakers are continuously shifting gears to remain competitive.
While the troubled waters persist, the businesses are taking this as an opportunity to strategically reinvent and transform themselves. On the whole, the industry seems to be leaving no stone unturned to get ahead of the high hurdles posed by corona and thus gain a competitive advantage.
Technology transformations poised to defeat the slowdown spell
Though out of shock, this fall-out from the pandemic has brought some radical changes in consumer behavior as well as the long term business model of the automotive companies. The growing inclination towards digitization and electrification is an example of one such great consumer shift. People are increasingly waking up to the benefits of shifting to a low carbon economy which calls for a dire need to adopt clean technologies and EVs.
With combustion technologies rapidly being swapped with electric technologies, E-mobility clearly is witnessing a quick mass adoption. This growing acceptance towards EV reveals a favorable twist for our planet. As is well known, electric cars are more climate-friendly thus contributing to the building of a cleaner planet.
New Reality- EVs are the future of the automobile industry
People’s increasing readiness to adopt sustainable products into their lifestyle is palpable enough. EVs reduce air pollution as they emit fewer greenhouse gases than petrol or diesel cars. EVs are also less pricey, easy to charge, and built with sophisticated technology, making them attractive alternatives for regular vehicles.
Additionally, to cope with the losses during the pandemic, automakers are focusing on investments that can potentially generate profits in the short term. Hence industry forecasters estimate that in the coming 2-3 years, automakers will invest more in EVs and less in Autonomous Vehicles (AVs).
Statistics behind the wheel
According to Statista (a leading provider of consumer and market data), 15.4% of the vehicles sold in 2023 will be electric. It’s a steep hike compared to the EV sales this year in the US, which is 4%.
Along with EVs, automobile industry experts estimate that used and pre-owned car sales will grow significantly. Cision (PR News wire) forecasts that the demand for affordable second-hand cars will exceed $1970 billion between 2021-2028 in developing countries.
Reduced bank interest rates for auto loans and low monthly EMIs
Car dealers have tie-ups with the banks to provide historic-low interest rates for auto loans. Additionally, the banks have reduced monthly EMIs to a greater extent to attract car buyers and increase car sales.
While the auto sector is still coming to grips with the ramifications of COVID-19, there has definitely been some strong pick up on the retail front. The market presently is witnessing a swift revival of demand owing to the festival season sales.
If you are amongst many who intends to get a new car but have been postponing the decision, now is the time. As mentioned earlier, the auto sector is on the mend and the car dealers are recovering quickly.
With Christmas and New Year fast approaching, you may be in a pretty good position to get attractive deals on a new set of wheels. All you need to do is to keep an eye out for bargains that are up for grabs this festive time. It’s time to take advantage of the cash back incentives available all across the car marketplace.
If you still want to save more money on top of the festive deals, try to be flexible with your vehicle choice and the features that come with it. Sometimes being listed for prolonged durations result in reduced car prices.
Upgrades are the best in the ongoing market circumstances
If you already have a car that you want to upgrade with the latest model, you have great news. As there is substantial demand for both used and new vehicles, swap your old car in exchange for a new car for a lesser price.
It’s time to make good use of your high credit score
In the current situation, high credit scores come to your rescue when you are ready to apply for an auto loan.
The Bigger picture
While full recovery of the automobile industry could take some more time, let’s continue to believe that the worst is behind us and the auto sector will achieve continuing sustainable growth. Let’s just hope for brighter days and a better future for the entire auto business landscape.