Significant COVID-19 Impact on Connected Cars Market in Automotive Industry |
Posted by swarajya on April 21st, 2021
COVID-19 Impact on Connected Cars Market in Automotive Industry
The COVID-19 a pandemic disease created severe outbreak in all the countries starting from China to almost in every country. It has impacted the human life, world economy, sports sector, industrial sector and other owing to which lockdown is initiated for prevention and to lower the spread. To control the disease spread lockdown is so far the better solution observed in the many countries but it has adverse effect on the economy. Standard safety measure adopted most government bodies is implementation of lockdowns & curfews all over the state or region except urgency services and daily needs sector. Implementation of lockdowns & curfews resulted in temporary closure in all industries and its activities until lifting of lockdowns is announced by the government bodies. COVID-19 Pandemic is not only regarding health or medical crisis moreover economic conditions are also facing consequences due to the pandemic situations. This lockdown scenes resulted in high level impact on all sectors, most of the businesses suffered debts and losses; however few businesses made huge profit in these pandemic situations. The pandemic situation created major impact on the customer’s financial incomes as companies are facing financial wrath, employee lay-offs, pay cuts and other problems are emerged in the global connected car market. The automotive industry witnesses strong hit in the first quarter of the 2020 as the all manufacturing facilities, showrooms and other corporate offices, storage points and logistics & supply chain has been shut down. Connected cars are facing similar sales draught as that of other non-connected vehicles. Collaterally connected cars technology and industry is facing serious decline in sales and operation. The pandemic situation created major impact of the customer’s financial incomes as people are now looking to complete needs rather than going after wants and desires such as buying a connected car. Car has almost become a vital part of the human life and automotive industry has witnessed strong decline in sale or zero sale at the end of the first quarter. Market leading players such as Toyota, Volkswagen and others are facing decline in revenue growth comparing to the previous year.
For instance, In May 2020, according to Hindustan Times sales of passenger vehicles in India have fallen down to 18% which worst fall in several decades. However, the growth for connected cars market is paused but not denied.
Impact on Demand of Connected Cars
Connected cars are considered as future technology and replacing non-connected vehicles, connected cars are being rapidly adopted since its invention. Over the last 5 years connected cars have seen exemplary growth in adoption rate due to its precisely advanced features at not much higher cost than normal vehicle in particular segment, features such as auto-vehicle diagnostic, safety & security, eco driving and other such unmatched advance features.
Due to COVID-19 pandemics, the demand for connected cars has witnessed a serious hit in first and partially second quarter of the year 2020 during COVID-19 pandemic; which has resulted in sales decline which is worst in history since its inventions. However, with easing of lockdowns and resumption of operations in various industries and manufacturing plant; demand for connected cars is slowly rising as manufacturing plants have started manufacturing the products on small scale with adhering to social distancing norms stated by government bodies. Apart from manufacturing, sales of connected cars have resumed as automotive showrooms have reopened after easing in lockdowns and curfews.
Following table shows the statistics for number of connected cars sold in India by Kia motors. Kia motors offer two connected car models in India Seltos and Carnival. Below table can be taken as reference for performance of other auto manufacturers as pandemic COVID – 19 have impacted on whole automotive sector.
From the table it can be observed that during lockdown situation in India, Kia Motors sales zero connected cars in the month of April. In the month of May when lockdowns started easing up gradually countrywide, sales again picked up for connected cars and demand is increasing steeply. Same situation is applicable worldwide as time period for lockdowns and curfews varied due to non-uniform spread of corona virus. Read more…
Like it? Share it!
About the Authorswarajya
Joined: April 7th, 2021
Articles Posted: 53
More by this author