Since late November 2019, the outbreak of the novel coronavirus COVID-19 has led to widespread fears over the economic stability of countries all over the world. Although it is impossible to predict precisely what will happen over the coming weeks and months, some of the adverse effects of social distancing and slowing production are already being felt.
With car sales already dropping off drastically in China, and production ceasing across Europe, the face of the automotive industry is already changing.
February saw sales of passenger cars fall by around 80% in China, compared with the figures from 2019, as fears over the novel coronavirus deterred potential shoppers from entering the dealerships. New incentives have been introduced in a bid to encourage buyers — for instance, the city of Foshan in the Guangdong Province has started offering rebates of up to 3,000 yuan ($430) to potential buyers — and sales have begun to climb throughout the end of February and the beginning of March.
If anything has been proven over the past three months, it has been how rapidly the effects of a single disruption can be felt around the globe. Automakers in Europe are now experiencing interruptions to the deliveries of parts being sent from production lines in China, in addition to the falling demand echoing that felt by the car market in China.
Following WHO’s decision to label the outbreak of the novel coronavirus as a pandemic, many of Europe’s largest car and parts manufacturers made the decision to cut or cease output in the interests of keeping their workers safe.
Italy is currently facing the worst outbreak outside of China, and plants producing parts for Fiat, Lamborghini and Chrysler — as well as tyre-makers Pirelli — have all slowed or halted production in their Italian plants.
At this point in time, there is no way of knowing precisely what course the novel coronavirus will take, and what lasting effects it will have on the automotive industry at large.
The rapid decline in China’s car market may offer some insight, however worrying, into the immediate future for the global car market. Now, as the virus becomes increasingly prevalent throughout our lives, and yet more people face self-isolation, car manufacturers’ sights must turn to forging a long-term recovery strategy, rather than short-time mitigation.
Due to the delays in car production spreading across Europe and Asia, the near future for the new car market is on rocky ground, but many of us continue to rely upon owning a dependable, safe vehicle to take us where we need to go. Unfortunately, with questions over social distancing and our own ability to continue working, many are hesitant to replace older, less reliable cars.
No deposit car finance offers a valuable opportunity for car buyers to get behind the wheel of a high quality car, without the burden of making a large cash payment. We can help you to buy a new car with no deposit, and manage the cost through a series of affordable monthly payments, to ensure that you are not left stranded throughout these uncertain times.