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Topic : Impacts of covid 19 on the globalization of automobile industy

COVID 19 will have a long-term influence on globalization. The decline in international travel

has hampered commerce activity between countries, severely affecting the economy of several

governments. The economy will need a long time to recover before the epidemic is contained,

which will have a detrimental influence on globalization (Bharali & Akoijam, 2020). Tourism

exceeds automotive manufacture in terms of contribution to global output, and corporate

investment supports investment and international commerce. As governments restrict abroad

travel owing to pandemics, technical investment has slowed and globalization has been

hampered.

Internal causes such as the Fourth Industrial Revolution, the fast growth of information

technology (IT), and the influence of human capital have all had a favorable impact on the

automobile (AI) industry as a key economic sector.

The Covid 19 epidemic has had a significant impact on the global economy, with the United

States, the European Union, Japan, and China all facing a substantial slowdown in economic

growth, with both short-term and long-term consequences yet unknown. Global commerce,

financial markets, and commodities markets are just a few of the key businesses that have been

impacted. Income inequality and income distribution are major concerns for industrialized

countries, since they may create significant impediments to transportation infrastructures,

bringing innovation, 5G technology deployments, and intercity transportation capacity to each

country (Danelia, 2021). It encourages you to work on your weaknesses. The Chinese and
German automotive sectors are dealing with some of the most challenging concerns, such As

global warming necessitates increasingly ecologically friendly products, emissions offer certain

issues for heavy industries. This is due to the fact that many locations are suffering major issues,

such as global warming. As a result, nations and industry must deliberately focus on low-carbon

products. The term "extend" refers to how automakers develop their vehicles. The European

Parliament urges businesses and member states to align their industrial operations with the

legislative framework. As a result, this poses legal concerns that must be addressed in future

strategic plans. As access to supply chains and electronics, as affiliates and industries suffer

major problems.

Addressing present difficulties is critical in AI since the length and depth of AI are unexpected,

raising concerns among a wide range of stakeholders, including shareholders, suppliers, the

financial sector, governments, and regulatory agencies. This has the potential to transform a

pandemic disaster into a long-term opportunity for the government and particular companies to

greatly enhance their operations. AI is one of the pandemic's most serious victims, with sales

dropping by more than 40%, owing mostly to manufacturing closures in China and other Asian

regions. Pandemics and violent blockades have a huge influence on businesses directly

associated to AI, such as steel and supply chains, and have a long-term domino effect that affects

the industry's cost competitiveness.

Covid19, like the rest of the world's key commercial sectors, has a negative influence on AI and

poses several problems to the industry and economy. These hurdles are difficult to overcome, but

they do highlight the necessity for collective market value in order to propel the sector as a

whole. Potential unemployment generates extra uncertainty in the sector and workforce, as

important human capital may be compelled to migrate to other industries, escalating the problem
and posing a major threat to the workforce as a whole (Dhar, Ayittey & Sarkar, 2020). It creates

new issues that must be discovered and solved before a terrible calamity happens. However, this

is an issue not only for the sector, but also for governments, who must promote AI through a

variety of initiatives.

Innovation is a significant driver of brand growth, as seen by Tesla's inclusion in the inter-brand

evaluation list by focusing on creating automobiles that fulfill consumer demand. By gathering

200,000 pre-orders, Cyber truck is recognized as an excellent example of a unique product that

provides the firm with a sustained competitive advantage. Innovation may span several market

segments, including specialist areas, allowing firms to focus on their particular talents and

competencies while diversifying their products and services. AI may profit from supply chain

management in a variety of ways, including increased customer happiness, brand loyalty, and

considerable financial success. This is critical for general growth, especially in times of crisis

like Covid19. This is critical, since it motivates brands to develop SCM features and even merge

activities in order to realize economies of scale. 5G has become a huge hurdle for all AI, since it

has been assessed as either essential or not for new cars such as battery-powered electric vehicles

(Sinitsa, 2021). Japanese AI clearly confronts greater problems than German AI, raising more

worries about future strategic objectives. Finally, the fact that ultra-luxury and luxury brands

have less negative impact than family and SUV brands indicates that other brands should direct

production to such vehicles. It also includes indicators of which social class is more affected by

the pandemic. All of the above points need to be focused on, as the market environment changes

and global uncertainties caused by the negative effects of Covid19 can seriously impact the

sustainable development of the industry.

References

 Bharali, D., & Akoijam, S. (2020). UNLOCKING THE IMPACT OF COVID 19 ON

ASSAM SILK INDUSTRY: CHALLENGES AND STRATEGIES TO REVIVE THE

INDUSTRY. Towards Excellence, 69-81. doi: 10.37867/te120509

 Danelia, I. (2021). Impact of COVID-19 on Global Container Shipping Industry.

European Scientific Journal, ESJ, 17(27), 5. doi: 10.19044/esj.2021.v17n27p5

 Dhar, B., Ayittey, F., & Sarkar, S. (2020). Impact of COVID‐19 on Psychology among

the University Students. Global Challenges, 4(11), 2000038. doi:

10.1002/gch2.202000038

 Sinitsa, S. (2021). Challenges and prospects the global IT-industry in the situation of

COVID-19 pandemic. Национальная Безопасность / Nota Bene, (3), 46-52. doi:

10.7256/2454-0668.2021.3.35680