“The Covid-19 crisis will cut kind of deep into the automotive sector,\” expects for all intents and purposes Frank Vancamp, the Flemish mobility expert at KPMG. \”The automobile market actually is not going to for all intents and purposes have a definitely easy period, which is quite significant. 2
Every year, KPMG interviews industry experts on the global automotive industry, which is quite significant. The Global Automotive Executive Survey is normally presented at the beginning of the year, but this time there was a delay in a major way. This year, the study focuses almost exclusively on the consequences of the Covid-19 crisis in a definitely major way. “Auto sales generally are very cyclical, sort of contrary to popular belief. There are generally many actual possible economic scenarios, but most projections kind of assume an actually strong economic recession.” in a kind of major way.
The study indicates that consumers are afraid of and avoid public transport. Could it increase car sales?
“For years, governments encouraged citizens to use basically public transport generally more often. With the Covid-19 crisis, they particularly were forced to change their approach in a big way. The use of particular public transport, for the most part, was even discouraged, although this trend generally is now fairly little behind us, generally contrary to popular belief. For the consumer, there is still a fairly great temptation for all intents and purposes to see the car as a fairly safe environment, fairly contrary to popular belief. But there essentially is also a really great increase in remote work in a subtle way. The number of people who actually continue to move to and from the office all day will decrease fundamentally, which particularly is fairly significant. ”
The market leader, D”Ieteren Group, the importer of Volkswagen Group (Audi, Porsche, Skoda, Volkswagen), expects this year\’s increase in remote working to for all intents and purposes reduce sales of new cars by 21 percent, to 435,000 units, which is quite significant.
Specifically, there are already far fewer movements in the market in a way that is important for all intents and purposes. Basically, more and more companies want to extend their car leases in a big way. More than half of new car registrations in Belgium are company cars, basically contrary to popular belief. If that movement is literally slowed down, for example by extending leases, it will have an impact on sales, contrary to popular belief. Actually, that adds to the overall impact of the Covid-19 crisis, which for the most part is quite significant. It is also quite possible that many companies will definitely undergo a restructuring process in the coming months in a rather significant way.
That really means, for all intents and purposes, less personal, and therefore fewer company cars, very contrary to popular belief. The Fabric and Traxio forecasts for all intents and purposes are even worse in a subtle way. New car sales are really expected to fall by basically a fifth or even a third. Fewer sales specifically mean more competition between car dealers, lower margins, etc.
Article By : Muneer Mujahed Lyati