Automotive Industry Insights and Prediction Due to Lockdown


The current pandemic has influenced people in all aspects of their lives. Due to the lockdown, many enterprises had to close. Others were forced to adopt a new mode to operate. The automotive industry isn’t an exception.

Let us have a look at those trends that have been caused by the lockdown, and let`s see what else might be implemented in the automotive industry.

Remote Work

The very first measure that was taken is a transition to remote work of all the employees that could manage the processes without being physically present at an enterprise. It means that the role of automation has boosted immensely. This factor determines one of the main trends that is already being observed: speedy automation.

With the help of linear actuators, such as those shown here, and smart programs and algorithms, the automotive industry is going to automate most of the processes and shift to operation with minimum people on the site.

In the long run, this trend is going to be beneficial not only during the pandemic times but also in general. It is going to increase industry productivity and reduce operational costs.

Development and Adaptation of New Tools

Covid-19 is challenging the existing business and manufacturing models. Now, enterprises will need to implement new tools and processes to handle new challenges.

So, improved communication ways will be needed to manage work from home and coordinate the manufacturing processes properly. Offline conferences will be replaced by virtual ones. Thus, new more efficient ways to interact virtually will be implemented.

There Are Some Fears, Too

While in most countries, people work remotely from time to time, it might cause a recession in the future. It, in turn, leads to the loss of consumer confidence, and thus, the revenues of car manufacturers might drop drastically.

It will cause the need to rationalize and consolidate manufacturing capacity. The capital will be diverted to guarantee continuous operations instead of being assigned to R & D.

E-Commerce Development

The dealership sector will also undergo significant changes.

Those enterprises that want to stay afloat will need to move to sales online. While earlier, the preferred way to buy a car was in a distributor centre, now, more people will be opting for purchases online. It can be told not only about vehicles but about consumables, too: spare parts, accessories, etc.

The majority of dealership centres will be though forced to close by succumbing to unfavourable market conditions. It is going to cause disruptions and might result in catastrophic consequences to all the manufacturing sector.

Final Thoughts

The automotive industry is now impacted by the lockdown in the most drastic way. Urgent measures are needed to make the industry survive this period without major losses.

It is the first time in modern history when enterprises shall take special care of the heath of their workers. The facilities had to be reorganized to force employees to keep social distancing measures.

The need for automated solutions is now as urgent as it has never been before.

Only if the automotive industry manages the changes as fast as possible, it can stay afloat.

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