The pandemic heavily impacted many industries. Some of the industries that greatly suffered are the sports industry and the travel industry. Even the automotive industry felt the impact of the pandemic in more ways than one.
Many car parts and original equipment manufacturer paused their production during the pandemic. Some still haven’t resumed full operation. This disrupted the manufacturing of vehicles around the world. Some automakers even had to shut down their operations to disinfect their factories and protect their workers against the virus.
Many people are sheltering in place while many companies had to make their employees work remotely full-time. This caused a decrease in the number of cars on the road and why fewer people are buying cars. Ride-sharing companies started to feel the severity of the pandemic and are now trying to find other ways to thrive.
The pandemic has other effects on the car industry. Now the question is, what can we expect once the pandemic is over? Will people continue to live indoors or will they start filling up the roads again in their private cars? Will the automotive industry bounce back higher after all? If we ask the experts, some believe the following trends will dominate the automotive industry post-pandemic.
Car Sales Will Surge
As the economy completely opens, we can expect more people to invest in cars. After being cooped up for so long in their homes, people can’t wait to be outside and go on long road trips. From SUVs and ATVs to off-road trucks, more people would be upgrading their cars into one that can meet their off-roading needs.
Another reason why experts expect car sales to increase is since the pandemic made social-distancing the new norm. The outbreak made us rethink our safety and will continue to do so even after the pandemic is over. One can expect more people to use their own cars to go to their destination.
According to research, even those with a limited budget would still try to buy their own pre-owned car to ensure their and their family’s safety. They may only be able to afford smaller cars, but they would rather choose this than have to share a bus or train with other people even if the pandemic is presumed over.
Increase in Hybrid and Electric Car Demand
More consumers are starting to embrace a more sustainable life. They are not only improving their home with sustainability in mind. They are also investing their hard-earned money on more eco-friendly cars.
Electric and hybrid cars are greener compared to gas-powered cars. Electric cars create zero polluting emissions while hybrid cars emit a lot fewer emissions than gas-powered vehicles. Because of the rising demand for more eco-friendly transportation solutions, automotive manufacturers are working hard to produce more affordable electric models to cater to consumer’s demands.
According to reports, electronic vehicles or EVs will beat gas-powered cars by the year 2040. We can say that this is a big possibility considering politicians are proposing the Zero-Emission Vehicles Act. This is a bill that will stop the sales of gas-powered cars in the U.S. by 2040.
Online Car Purchases Will Be the Norm
Today’s consumers prefer online shopping as a way to decrease their exposure to the virus. We can expect this shopping trend to continue post-pandemic thanks to the convenience it offers to busy buyers. Sure, car buyers will still go out to check and test run the vehicles they want to buy. But most will do research when looking for cars for sale, reviews of dealerships, etc.
The online shopping trend will also prompt car dealerships to improve their digital marketing. More companies will increase their digital marketing spending, especially in local SEO. This is since car buyers use the internet to try to find cars for sale near them.
Ride-hailing Will Never Be the Same
Ride-hailing companies experienced a tragic loss after the pandemic began. According to Uber Technologies, their ride-hailing business is yet to recover. They say their food-delivery business compensates for their loss as more people are ordering food rather than dining in restaurants.
Analysts claim it will be a long time before ride-hailing companies will recover. Many drivers already decided to stop working and are now staying at home to avoid the risk of exposure. When asked if they will return after the pandemic, some are not sure if they will indeed return to their post.
The impact of the Covid-19 pandemic in the automotive industry is undeniable. But despite all these, many are expecting the industry to thrive and succeed. The outbreak did open new opportunities and companies are stepping up their game to continuously serve the public and meet their expectations