The automotive industry outlook is likely to change dramatically by 2020. Several factors are affecting the market. As more people switch from gasoline-powered vehicles to electric ones, the need for skilled workers and advanced technologies will increase. New-car sales are expected to fall 20 to 30 percent in 2020, and it may take as long as four years to reach pre-COVID-19 levels. In response to these changes, the industry is working to adapt.
In addition to changing consumer behaviour, auto manufacturers are aiming to lower dealer margins while maintaining customer prices. They are moving towards an agency structure, which will remove the haggling process. As a result, the dealer will be transformed into a “handover” facility. Meanwhile, more people are buying cars online than ever before. This means that there is a significant need for new models and services. With new technology, OEMs are trying to make this happen faster.
The industry has faced numerous challenges in recent years. The latest report from the International Energy Agency reveals that car sales worldwide will fall from 92 million in 2018 to 88 million in 2019 and 73 million in 2020. These are the first signs that the industry’s future will be bright. The future of the automotive industry is uncertain, but it is worth considering. By looking at the past and present, the future is a better place than today.
The automotive industry is facing some tough challenges as it transitions to electric motors. China is the largest car market in the world, and is likely to continue its downward trend. Moreover, the coronavirus is returning in favor of cars, so the demand for new cars will remain robust in the next few years. While this is good news for consumers, there is also a risk of disaster for many organisations. In the near future, the automotive industry will be forced to focus on cost reduction and improved efficiency.
The automotive industry is facing many challenges. Among these are COVID-19. Both of these issues will disrupt the supply chain and make the retail environment unsustainable. The automotive industry is also facing a lack of cash. In this context, the industry will focus on cost reduction. In the short-term, it is important to focus on the benefits of electric and hybrid cars. A strong economy are vital to the survival of the automotive industry.
Last Line
The automotive industry will return to double-digit growth in 2020, but it will not make up for its slump following the coronavirus pandemic. By 2021, new car and commercial vehicle sales will grow by 16%. In the meantime, automakers will need to revamp their global operations and close plants, which will further weaken their market share. This means that automakers will have to reduce costs and consolidate. In the long run, the future of the industry will be more competitive than ever.
