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2020 was indeed a year of disasters and misfortunes. The sudden outbreak of the deadly coronavirus not only took so many valuable lives but also unleashed a global trauma in modern history. The Institute of Supply Management confirms that nearly 75% of businesses are currently experiencing supply chain disturbances.
And the transport and automobile industry is among the worst-hit industries across the world. During the pandemic, the automotive industry has experienced dramatic turbulence in consumer behavior. The fall in demand and supply has affected the annual sales and economic curve, giving the automotive businesses a hard time coping with the situation.
To know about how coronavirus shook the entire world of automotive industries upside down, keep scrolling:
- Decline in sales and production due to lockdown
In order to limit the spread of the virus, the governments of almost all countries took a harsh decision for complete lockdown. The emergency services could carry out their operation as usual. But the automotive industry failed to make it to the list of emergency services. And that’s where the problems started to arise.
The plants were not at all in the operating mode for many months together. The showrooms’ consumer footfalls had fallen sharply, which eventually resulted in a significant drop in trade.
According to recent statistics, the US automotive industry is expected to experience a shift of 26.6% in the coming year. It will definitely take a lot of time and energy to bridge the gap.
In fact, many people had to deal with a severe financial crisis during the pandemic. So, gradually, the demand went from minimal to zero.
Currently, the industry is particularly vulnerable to unexpected situations and delays. As the raw material and finished vehicles’ delivery is uncertain, the manufacturers are reluctant to keep large amounts to stock in storage. Thus, the drop in production.
- The domestic and International shipping Industry came to a halt!
The imposed lockdown halted the domestic as well as the international shipping industry. The US residents weren’t able to receive cars from abroad, from highly affected places such as China and Italy.
The automotive industry owners confirmed that there are many pending orders to be shipped around the world. And this is creating frustration for both; the seller and the customer.
However, the governments are coming up with new guidelines to cope with economic losses. The transportation of the vehicles within the country and internationally has been permitted with some safety measures. The professionals at https://geyerstowing.com/auto-transport-services/ noticed the changes and included all the service measures to keep things going smoothly.
The good news is that there is a solution to every problem!
Automotive Industry had to face so many challenges during the pandemic. From sales to production, everything just stopped. The world is adjusting to the new normal, so should everyone else.
To cope with the situation, there are some solutions every Auto Industrialist should know about:
- First of all, keep the health of your employee a priority. No profit is worthy enough to compromise with human life. Monitor your employees’ health and take the necessary measures at your workplace.
- After ensuring that everything is safe and sound to function upon, build an instant response team and define your short term goals. Also, review your working guidelines and ensure the support supplier stability.
- Do not forget to implement a contactless sales process to meet health and hygiene safety requirements, keeping your staff and customers risk-free.
- Evaluating numerous discount policies might elevate the brand image along with the sales. You can also start focussing on revising the sales model by embracing digital channels, as well as other modern marketing techniques. For instance, many carmakers turned to digital solutions to allow customers to get the best services without compromising their security.
Some automotive brands like Volkswagen, Nissan, SAIC, and BMW adopted some online shopping techniques and live broadcasts to stimulate sales.
Remember this, “The Show Must Go On!”
As the automotive industry resumes its operations, there might be a surge in growth in the market. The important thing is that the coronavirus outbreak has definitely accelerated the industry consolidation and transformation. Focus on every aspect one by one and you will definitely achieve the success you desire.
7 Productive Automobile Business Initiatives to Pursue in the Post-Pandemic Era
As a business owner, it is your duty towards your business to mend the damage done by this deadly virus. You might not be able to change the situation around, but adopting solutions to conquer emerging trends can always help you navigate the disruptions. It is high time to change some gears for a smooth ride ahead!
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