Covid-19 outbreak has badly affected the automotive industry across the globe. The automotive industry is dependent on various allied industries such as iron, steel, glass, plastic rubber etc. It is estimated that the global automotive industry would witness a decline of almost 30% through 2020. Initial days of the pandemic disrupted the supply chain and now a sharp decline has led the industry into a big question about the recovery. To know more specific impact on the industry fill the required information and we would be happy to assist you.
Amid of COVID-19 which is originated in Wuhan of Hubei, which is one of the four major automobile production bases in China and has more than 100 automotive suppliers has an adverse impact on the global automotive sector as 85% of the world’s supplies are dependent on China in some way or another. The disturbance in the global supply chain due to Chinese industrial disruption has the hardest hit on the automotive sector as major OEMs have their manufacturing base in China. Thus, the slowdown in production due to suspension in the operation by the automaker and supplier has impacted the overall revenues for OEMs and suppliers alike.
Owing to this, the automobile manufacturer faced a major slump in the sales and production of the vehicle which affected the economy of various countries. The value chain of auto components also gets affected due to the temporarily shut down of manufacturing facilities and a steep decline in demand as there was lockdown induced in many countries.
According to the Society of India Automobile Manufacturers (SIAM), the sales of passenger vehicles plummet 51% to 143,014 units in March 2020 in India along with this. Apart from this, the U.S is also predicted to foresee a significant slump of 27% in automobile sales in 2020.