COVID-19 Expected to Have Far-Reaching Impact on the Automotive Sector
Pandemic is likely to create poor economic conditions for vehicle sales and innovation, and attitudinal changes may hamper previous consumer trends toward shared mobility
A new report from Guidehouse Insights examines the potential impact of COVID-19 on the global automotive market, providing forecast analysis on overall vehicle sales, electric vehicle (EV) sales, and automated vehicle deployments.
COVID-19 has afflicted the global economy unlike anything in recent times. For the automotive sector, the impacts are expected to be far-reaching—and possibly greater than those of the 2007-2009 recession—as unemployment skyrockets and travel is restricted. Click to tweet: According to a new report from Guidehouse Insights, COVID-19 is likely to not only lead to poor economic conditions for vehicle sales and innovation, but it will also create sustained impacts on trends in telecommuting and online retail that may increase consumer trends to abandon individual vehicle ownership.
“With cash tight, oil prices low, and governments looking to recover productive capacity, manufacturers and consumers will likely turn back to familiar vehicle options initially,” says Sam Abuelsamid, principal research analyst at Guidehouse Insights. “However, as the economy recovers, governments are likely to increase pressure on tailpipe regulations, improving conditions for EVs in the long-term.”
To position for long-term success, Guidehouse Insights recommends automakers increase investment in low and zero emissions technologies and plan for expanded regulations on emissions. Automakers will need to reconsider the investment balance between electrification and automated driving, while stakeholders should expect an increase in the need for commercial vehicles that support deliveries. Additionally, transit stakeholders must attempt to recover public trust.
The report, Assessing the Coronavirus Impact on Automotive Electrification and Drive Automation, discusses the potential impact of COVID-19 on the global automotive market, providing forecast analysis on overall vehicle sales, EV sales, and Level 4+ automated vehicle deployments. This report also updates Guidehouse Insights’ latest forecast model for vehicle sales with an eye toward factoring in the potential economic and social impacts of the coronavirus and the COVID-19 disease it causes. It also provides recommendations for automotive sector stakeholders. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Assessing the Coronavirus Impact on Automotive Electrification and Drive Automation, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.