Due to the rise of the highly contagious COVID-19 pandemic, every sector has suffered a lot, especially the automotive sector. This pandemic has given a rise to the deductions in salaries, unemployment, and restrictions on going to the streets which has become a major reason for the decrement of the sales in the automotive industry.
The sales in the automotive sector have not only affected a single region but affected globally which lead to a decrease of 39% of sales worldwide. Also in the developed countries of Europe it has faced highly low graph of 38 year low in march 2020 including USA with 38% decrease in sales.
Let’s have a look at the different popular countries which had a major impact on the automotive sector during the year 2020.
The wave of COVID-19 also hit the developed countries like the USA very badly in the automotive sector, As it called for the active lockdown a bit late which impacted the sector highly. Due to the strict guidelines of lockdown and other stringent rules, the sales in the auto sector slipped down to 38% up to a million units. As the markets were very strong at the beginning of the year but as the situation worsened the sector showed a steady decline in the sales.
Also in Latin America the sale of the units fell by 3,18,000 units. It also affected the markets of Argentina, Colombia, Chile, Peru, and more recently Brazil and Mexico.But greatly affected the third-largest automotive marketplace in Argentina due to the economic crisis.
After the economic crisis, the USA shown considerable recovery by the end of year 2020, 1.65 million motor vehicles were sold to customers in the United States (source). Which gave a good breath of relief to the automotive businesses.
The Impact of COVID-19 in India was a bit fatal. India the fifth-largest passenger car market in the world, showed a drop of 51% and total sales of 1,43,014 units in March 2020. Also when the customers were about to buy BS-IV versions for a considerably cheap rate but due to the announcement of nationwide lockdown, they were compelled to go for expensive BS-VI versions which is expected to be one of the reasons behind the drop in sales. Also as consumers were not able to leave their homes it becomes a bit challenging for this sector to grow and increase sales.
As the industry was facing many problems like trade wars, lower economic growth, and tougher emissions regulations came long after then the COVID-19 took hold of it and added more challenges to the industry.
Post COVID-19 wave, the Indian automotive sector showed an upside of 4% and expected to grow with a better margin in next quarter reports.
As the lockdown imposed in china the sales of the automotive sector got a decline of about 38% on a year-on-year basis and 76% only in February 2020. As the reports told that China will continue to grow on and return to the regular basis after the remote working will be lifted and everything will get back to normal.
Chinese markets showed a great rebound of 66% to the normal level / Post COVID levels and showed that it will have a great recovery in the further sales reports.
As the COVID-19 and year 2020 was a really hard time for every sector especially the automotive sector a huge decline was seen in it. But As of now, the situation is returning to normal the auto sales numbers are improving and companies are getting their grip back on markets.
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