IMPACT OF COVID-19 ON THE

AUTOMOTIVE INDUSTRY

BY : RAMAN
ATUL (19109029)
ROHIT
 DEPENDENCY OF GLOBAL
ECONOMIES ON
AUTOMOTIVE INDUSTRY
 Links to other industries: steel , petroleum and gas, textiles ,
repair ,chemical , mobility services, chemicals, etc.

 Employment in the Automotive Industry: 14 million in Europe,8

million in USA,5 million in China ,1.4 million in India.

 Contribution in GDP: 7% of EU GDP,3.5% of USA GDP,10% of

China GDP and 7% of Indian GDP which is about half of our
country’s manufacturing output .
 Automotive Indutry
Before Pendemic
The automotive industry is dirupted by :
Connected car technology
Autonomous driving technology
Electric Vehicles
Car pooling
Cab and leasing apps
New emission norms
Rising oil costs
Shift of consumer preference to SUVs
 How Covid-19 started affecting
AUTOMOTIVE INDUSTRY
 China puts lockdown 23 january which lasted
for 59 days disrupting supply chain of goods
from China to world .
 In march , entire world starts to realise how
serious is this disease and lockdown starts to
get implemented in various countries stopping
production and sale of automobiles in almost
entire world .
How Automotive Industry tried to cope with Pandemic

 As car dealerships shuts , most of automobile

manufacturers launch websites to educate
customers about their products where
customers can even book and buy cars .
 As cash flow from customers stop
manufacturers cuts their fundings in research
and development of future products .
 Manufacturers launched various new products
virtually to create buzz and keep customers
involved .
 Contribution of
Automotive Industry
in improving Covid-19 situation

 Various manufacturers used their

manufacturing facilities to produce important
medical equipments .
 Engineering departments from various
manufacturers used their engineering expertise
improve medical equipments .
 Various manufacturers donated money as well
as vehicles to help government .
 Present Situation in
Automotive Industry
Currently as unlock has started all over globe ,
automotive industry has started production
and sales are increasing with even larger
numbers than before lockdown .
 Future implications of Pandemic
on Automotive Industry
 Less funding for future projects .
 Exit of manufacturers from less profitable
markets and vehicle segments .
 Likely decrease in new and defaults on old
automobile loans .
 Decrease in revenues of shared mobility
providers .
 Heavy discount on old inventory .
 Increase in online vehicle sales .
THANK YOU