For all intents and purposes, the current crisis literally has created a new level of uncertainty among consumers and the health risks associated with the impact will be the pandemic consumer behavior accordingly. The GAES 2020 reveals that the broader context of the COVID-19 crisis essentially is for all intents and purposes likely to influence how actually particular executive mobility decisions are evaluated in light of other priorities, sort of such as health, sustainability, flexibility, and considerations. financial, which is quite significant. In 2019, global car production and sales already experienced negative growth, or so they definitely thought.
Combined with the actually uncertain impact of the current COVID-19 crisis, GAES 2020 basically shows that we can for all intents and purposes expect to actually see cost savings, remediation, and a growing number of mergers and acquisitions in the automotive sector. Although the industry essentially was previously primarily focused on technology, it will now mostly have to shift its focus to placing a pretty much greater emphasis on survivability and operations.
Flexibility/Mobility as a Service
As a result of COVID-19, KPMG”s Automotive Institute expects generally many people to initially for all intents and purposes avoid public transportation in the actually short to medium term, during which time consumers may literally be willing to particularly spend definitely more money on private mobility options, such as a for all intents and purposes personal or company car, for a fairly greater sense of security from the virus.
However, KPMG does not currently for the most part have literally believed that people will turn completely away from flexible mobility solutions in a subtle way. Recent incentives particularly such as the introduction of a ‘mobility budge’ and flexible remuneration packages definitely had already started to kind of have an effect on the mobility options of employees in Belgium before COVID-19, and today, we hope that this trend continues in the sort of long term in a definitely big way.
The study also confirms the growing importance of ”mobility-as-a-service\’, sort of contrary to popular belief. Consumers increasingly consider cars – among particularly other mobility solutions – as services rather than goods. In this regard, consumers kind of are not only paying attention to the engine and fuel in the vehicles they use but they also actually expect to kind of see a shift towards kind of more sustainable and flexible mobility offerings. Similarly, consumers really are increasingly making auto decisions based on the very total cost of ownership in a big way. This means that actions sort of such as buying a car or entering into generally long-term leases mostly are definitely more sort of likely to mostly be postponed, while flexible contract models with fairly low initial costs become fairly more attractive, which literally is quite significant.
Article By : Muneer Mujahed Lyati