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Impact of COVID 19 on the Automotive Market

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  • March 2020
  • Region: Global
  • Orion Market Research Private Limited
  • ID: 5013559
Global Automotive Market Size, Share & Trends Analysis Report by Sales Channel (OEM and Aftermarket), Product Type (Passenger Vehicle and Commercial Vehicle), By Propulsion Technology (Conventional Vehicle and New Energy Vehicle), Impact of COVID-19 on Global Automotive Industry, and Forecast 2019-2025.

The global automotive industry is expected to register steady growth over the forecast period 2019-2025. The automotive industry contributes significantly towards the economy of several major countries and also is considered to be the backbone of many nation’s GDP. Major factors that will augment the industry growth over the forecast period include rising disposable income and increasing focus on the development and rolling out of electric vehicles on road. Governments across the globe are providing subsidies on the purchase of electric vehicles to combat the environmental issues arising due to pollution from conventional vehicles. Thereby, focusing on surging the fleet size of electric vehicles in the existing vehicle fleet size of the country. Further, the disposable income of the consumer is rising due to which they are more likely to shift towards the more technologically equipped vehicles which are normally higher at price. Hence, likely to augment the global automotive market value.

However, the industry is facing a heavy headwind amidst the global economic downturn and trade war between China and the US. Moreover, there are several other factors at the regional level that are affecting the industry growth rate in a particular region. For instance, factors such as raising GST on automobile vehicles and mandatory implementation of BS-VI from April 2020 are responsible for the decline in the automotive industry growth rate in India. While the industry has not recovered from these above factors, it has hit a hard brake with the recent outbreak of COVID-19 pandemic. The spread of coronavirus across the globe has forced plants to shut down, disrupted supply chain and quarantined workforces. Several automotive giants such as Volkswagen AG, Hyundai, Toyota, and Tesla have shut down their production plants for a definite period, causing severe impact on the global automotive industry.

The report analyzes the global automotive market on the basis of sales channels, product type, propulsion technology, and geography. Based on the sales channel, the market is segmented into OEM and aftermarket. Based on product type, the market is classified into passenger vehicles and commercial vehicles. Passenger vehicle segments which include 2 wheelers and passenger cars is expected to dominate the global automotive market over the forecast period. Further, based on propulsion technology, the market is divided into conventional vehicles and new energy vehicles. The conventional vehicle segment held the dominating share in the global market in 2018, whereas, new energy vehicle segment which includes fully electric vehicles and hybrid electric vehicles is estimated register robust growth over the forecast period.

Geographically, the market is analyzed into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific held the dominating share in the global automotive market with China holding around one-third of the global automotive consumption. Apart from China, economies such as India, South Korea, and Japan are also influencing the automotive industry growth of the Asia-Pacific. North America and Europe also home several automotive companies such as Tesla, Daimler AG, Volkswagen AG, Renault SA, and others which further contribute significantly towards the global automotive industry. However, the recent outbreak of COVID-19 has severely impacted the automotive industry across the globe. China has been hit hard by this spread of the virus as the country is an epicenter of the COVID-19. Several provinces in China including Wuhan and Hubei, which collectively fulfills around 60% of China’s automotive vehicle production demand, have been quarantined. This has led to disruptions in the supply chain.

Moreover, China not only is the largest consumer and producer of automotive vehicles but it also caters to a wide range of countries by exporting several automotive components that are essentially used to produce finished goods. Shut down in the production in China has forced other automotive makers, such as Toyota and Tesla, to hold their production as the dearth of semi-finished products from China continues. Furthermore, the report profiles several players that are contributing to the global automotive industry. Some of the key players of the market include Bajaj Auto Ltd., BMW AG, Daimler AG, Fiat Chrysler Automobiles NV, Ford Motor Co., General Motors Co., Groupe PSA, Honda Motor Co. Ltd., Hyundai Motor Co., KIA Motors Corp., Renault SA, Toyota Motor Corp., Volkswagen AG, Yamaha Motor Co., and many others.

Research Methodology

The study on the automotive industry is incorporated by extensive primary and secondary research conducted by the research team. In secondary research, different approaches have been adopted to derive the market value, market growth rate and analysis trends in the industry due to the COVID-19 pandemic. In the report, the analysis of the country is provided by analyzing various regional players, laws & policies, consumer behavior, macro-economic factors and impact of the pandemic.

Numbers extracted from secondary research have been authenticated by conducting proper primary research. It includes tracking down key people from the industry and interviewing them to validate the data. This enables the analyst to derive the closest possible figures.

Sources Include
  • Financial reports of companies involved in the market
  • Whitepapers, research-papers, and news blogs
  • Company websites and their product catalog
  • Government Organizations Reports
The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

The Report Covers
  • Comprehensive research methodology of the global automotive industry.
  • This report also includes a detailed and extensive market overview with key analyst insights.
  • An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
  • Analysis of regional regulations and other government policies impacting the global automotive industry.
  • Insights about market determinants that are stimulating the global automotive industry.
  • Detailed and extensive market segments with regional distribution of forecasted revenues.
  • Extensive profiles and recent developments of market players.

Table of Contents

Report Summary
  • Research Methods and Tools
  • Market Overview and Insights
  • Scope of the Report
  • Analyst Insight & Current Market Trends
  • Key Findings
  • Recommendations
  • Conclusion
  • Supply & Demand Analysis

Market Overview
  • Historical market growth estimation in the automotive industry not accounting COVID-19 pandemic effect
  • Deviations in the automotive industry growth rate taking COVID-19 pandemic effect into account

Market Segmentation
  • Sales Channel
  • OEM
  • Aftermarket
  • Product Type
  • Passenger Vehicle
  • Commercial Vehicle
  • Propulsion Technology
  • Conventional Vehicles
  • New Energy Vehicles

North America
  • United States
  • Canada

  • UK
  • Germany
  • Italy
  • Spain
  • France
  • Rest of Europe

  • China
  • India
  • Japan
  • Rest of Asia-Pacific

Rest of the World
  • Middle East & Africa
  • Latin America

Companies Studied
  • Bajaj Auto Ltd.
  • BMW AG
  • Daimler AG
  • Fiat Chrysler Automobiles NV
  • Ford Motor Co.
  • General Motors Co.
  • Groupe PSA
  • Honda Motor Co. Ltd.
  • Hyundai Motor Co.
  • KIA Motors Corp.
  • Renault SA
  • Toyota Motor Corp.
  • Volkswagen AG
  • Yamaha Motor Co.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Bajaj Auto Ltd.
  • BMW AG
  • Daimler AG
  • Fiat Chrysler Automobiles NV
  • Ford Motor Co.
  • General Motors Co.
  • Groupe PSA
  • Honda Motor Co. Ltd.
  • Hyundai Motor Co.
  • KIA Motors Corp.
  • Renault SA
  • Toyota Motor Corp.
  • Volkswagen AG
  • Yamaha Motor Co.