COVID situation bound us to stay at home and doing a business activity from home. It is very true that office instructions, design jobs, following the PMP chart of project management, fault analysis, research, book writing, painting, making videos, etc are easy while staying at home. But what about car manufacturing industry like Tesla? Since the first Corona case, business and everyday life have virtually come to a standstill. The automotive industry is particularly affected by the protective measures taken by governments worldwide.
The entire automotive industry has come to a standstill in recent weeks. Factories have been closed, supply chains have been disrupted, and dealers around the world have experienced an unprecedented slump in demand. The situation is serious: According to the Federal Motor Transport Authority, new registrations of motor vehicles in Germany in March 2020 fell by more than a third compared to the previous year. To put this in context: The slump in car registrations is more serious than in any month during the 2008 financial crisis. The automotive industry is experiencing unprecedented disruption even outside of Germany. According to research by IHS Markit analysts, U.S. auto sales will decrease by more than 15 percent in 2020 compared to 2019. Around 1.4 million fewer vehicles could be produced if automobile plants in Europe, North America, and Latin America remained closed. Worldwide automobile sales are expected to be more than twelve percent lower this year than in 2019. In this tense situation, it is difficult to think about the future of the automotive industry after the corona pandemic. But despite all the challenges that manufacturers – so-called Original Equipment Manufacturers (OEM) – are facing today, the industry will survive the crisis in the long term. Because people will continue to drive and want to buy new cars. What will happen to the car giant Toyota?
What will happen to this car manufacturing industry? It is assumed that a labor-oriented job will be less and robotic activity will increase. We need to find new way for a sustainable automotive industry.
What will be number of cars in the Urban area? Will it be very surprising that there will be few cars? People are sharing those cars for their common needs? I feel some adaptation formula is coming.