It is barely three months since the first confirmed case of coronavirus (Covid-19) in December 2019. But today, normal everyday life has all but ground to a halt in a growing number of countries and we are facing a global economic slowdown. The measures implemented by the world’s governments to stop the spread of coronavirus are affecting almost all industries, and the automotive industry is no exception. This blog takes a closer look at the impact on the automotive sector, and examines the knock-on effect on the leasing industry.
To prevent further spread of coronavirus, most car manufacturers are taking a controlled response, such as by suspending production and putting orders on hold. However, the Covid-19 pandemic is just the latest in a series of challenges for the automotive sector to contend with. After all, the industry has been in turmoil for some time now as it struggles to cope with several rapidly evolving developments. For example, in recent years car manufacturers have had to deal with a shift in consumers’ mobility needs, emerging technologies (e.g. artificial intelligence and automation) and ever-tighter environmental regulations, to name but a few.