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No one would have imagined the effect the COVID-19 pandemic would have on the entire world's economy. However, one thing was obvious: People who could adapt to change quickly can recover fast.
DUBAI, UAE, January 25, 2021 /24-7PressRelease/ -- China, the leading producer and consumer of automotive, was the first country to go on a lockdown. That led to the closure of numerous factories, travel bans, and a sharp decrease in demand for vehicles. Soon after, countries followed suit and went into a total lockdown. The effects quickly spread to the whole world with a significant blow on car sales.
Before the pandemic, international car sales were estimated at approximately 80 million. But in 2020, alone, this industry experiences a whopping fall of around 62 million automobiles. But this industry's fate majorly depends on several factors, which we'll look at next.
With the onset of the 2019 virus, consumers who'd previously boarded an overcrowded passenger train or bus may feel safer traveling in a personal car. Others who were regular Uber and taxi customers may not feel as confident in using a shared vehicle.
Research shows that a third of the consumers without a car now plan on purchasing one within the next six months. As 78% of car owners now prefer traveling in their vehicles, post the pandemic.
Although this has led to a significant drop in passenger vehicle sales, there has been a notable rise in the purchase of pre-owned cars. And the best part? Companies have made the buying process easier and flawless to adhere to the preset social distancing regulations. Transactions are easier. Online car sales are increasing, and there are even pre-approved financing options.
Although online car sales may not overtake the 'showroom viewing and testing' car buying models, manufacturers will be more active online. Enquires will be replied to faster, and emails will get quicker responses.
Plus, with the increased number of dealers online, the competition will also increase. Buyers can now do adequate online research, compare deals from various suppliers, and make a more informed choice.
Thanks to the more individualized services, consumers are now more likely to shell out cash than negotiating in the prior showrooms. No one would have imagined the tremendous effect the COVID-19 pandemic would have on the entire world's economy. However, one thing was obvious: People who could adapt to change quickly through quick decision-making skills can recover from the pandemic much faster.
As stated earlier, social distancing called for reduced interactions. But considering the high cost of purchasing a vehicle, any buyer wouldn't want to make a buying decision with a test drive. Thus, companies who were able to adapt quickly and allow for test drives that gave the buyer a sense of safety had a higher edge over their counterparts.
Judging by the major effects of the pandemic, the recovery process of the automotive industry will be gradual. People were laid off from their workplaces while some companies, unfortunately, lost some of their best employees at their workplace. Other people had a salary cut, and their income is barely enough to afford a car upgrade.
On the other hand, many people will prefer to travel in a personal car, leading to increased demand. Consumers who intend to buy vehicles will now want to make the purchase decision as soon as possible. And thanks to the personalized services, the car buying processes are faster and quicker.
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