The coronavirus has negatively impacted the global Automotive Industry. Therefore many Automobile companies and OEMs around the world are planning and busy redesigning the whole industry to overcome the slowdown in the market. But it is going to take time to stabilize the market. The companies have to come up with other innovative and effective methodologies to sustain during the COVID-19 epidemic. The supply chain management of the whole Auto sector is affected due to the virus and hence requires cost-effective planning. Exploring the digital market with virtual trade will result in exponential growth in the market. Therefore, the companies must think and act accordingly and initiate steps that can benefit in the long run.
Coronavirus forced the Automobile Industry to go digital
The Chinese OEMs (Original Equipment Manufacturers) have come up with an innovative and efficient way of selling their motor vehicles online. Since in the coronavirus lockdown period, the Automotive Industry recorded zero sales, Automobile companies like SAIC, BMW, Volkswagen, Geely, and Nissan in China opted for selling their cars through a digital medium. The companies have started giving virtual tours to the customers and accepting the orders on their online platform. Many companies have opted for the drone facility to deliver the keys to the customers. The customers are encouraging such contactless and innovative measures taken by the company. Therefore, one of the most renowned companies in China, Geely, has recorded a sale of 10,000 units in a single month.
The Asian, as well as the European Automotive market, must take inspiration from the Chinese companies to initiate some activities to encourage automotive sales during the COVID-19 pandemic. Removing employees and terminating Research and Development operations are not the future proof solutions for the Automobile Sector to avoid expenses. Instead, investing in futuristic technologies and encouraging actions like virtual online sales and contact-less deliveries are going to be fruitful in the long run.
Redesigning the Automotive supply chain after COVID-19 ends
From the Original Equipment Manufacturers (OEMs) to the local car dealers, the whole Automotive Supply Chain is negatively affected due to this adverse spread of coronavirus. Hence, the Auto sector has started to rethink and overcome the negative impacts of COVID-19 on the Automobile Industry. Since China is the hub of the Global Automotive market, and it exports the crucial auto parts to most of the countries. India is highly dependent on China as it imports approximately 27% of the vehicle parts from Chinese OEMs. On the other hand, America also imports assembly parts from China.
Hence the India Auto sector is planning to redesign and restructure the whole supply chain management in India. The industry wants to be now independent and least affected because of such untimely adverse circumstances. Hence the India Auto Industry is planning to switch to an Agile approach and a cost-effective way to modify the supply chain. It must be noted that it will take around 12-18 months to fix the Automobile industry and recover from the COVID-19 effect. Whereas the USA automobile industry is planning to reduce its dependence on imports from foreign countries. The nation is planning to promote local manufacturing and will start enhancing and utilizing the components and parts from the US OEMs.
The Automobile Industry will take time to stabilize after coronavirus pandemic ends. The industry would like to forget this unfortunate time and must take this an opportunity to restructure the whole automotive sector. Various companies around the world are coming up with new and futuristic plans. Others are still working to balance the loss in the market.
The India Automotive Sector is one of the most affected sectors because of the spread of COVID-19. The car dealers around the nation are depressed because of unsold stock with them. The BS4 to BS6 transition was no less than stress for them, and now the coronavirus took everything from them. First of all, the market will witness a massive drop in prices of the unsold vehicles post coronavirus epidemic. It will allow the dealers to empty the stock quickly. The Federation of Automobile Dealer Association, India, also requested the Supreme court to give a relaxation to sell BS4 vehicles after the pandemic ends. The overall Automobile Industry must focus on long term planning and assuring to stabilize the market in minimal time possible.