Nearly every industry in our country has been impacted by the national lock-up. How is the car industry going to be affected? See what we are predicting for the coming year and how we will react to some of your burning questions about the COVID-19 impact on the car industry.
The nearly 30% year-on-year decline in new vehicle sales in March is a harbinger of the worst, with analysts and executives of the car dealership community expecting more demand slumps of almost 10 to 70% in the months ahead.
We’ve been on a fair revenue point for months instead of weeks. There will, sadly, be cash-flow issues in the sector. It’s going to take a few months challenging. I assume that this year overall turnover in the industry is likely to be 50 000 or 10% lower than last year. The new sales of cars would negatively impact the cash flow and productivity of car dealerships.
The good news is that during the lock-down you can still buy a car. In reality, until the point of delivery, the buying process remains virtually unchanged. If so, your new car will be held at the concession until your doors open again and you have lifted the lockdown. Alas, you can’t drive the car until you buy it, but most dealers have a virtual or interactive showroom where the ratings, specifications and vehicle information are shown.
This is a little more complicated than the last to answer for sure. Experts have mixed views on the consequences for vehicle sales of COVID-19. Most of us believe we’ll see an increase in car prices, and others believe it’s the best time to buy a new car because it’s cheaper and better.
Due to the mass shutdown of production plants and slowing production, there could be a possible shortage in the supply chain. There is not a decline of demand in many industries and manufacturers. This implies that the price of cars depends heavily on parts and automobiles being purchased and made. Many car brands have used air freight.
As we have stated previously, the effect of COVID-19 on the automotive industry is still too early to be understood, but we still have hope. While the sales and production of vehicles are expected to decrease, we know that we are going to find ways to tackle this tough time and eventually resolve it.
By Noni Nchwe