Date Published: October 17, 2020
Oliver Zipse, the Chairman of the Board of Management of BMW says that the coronavirus will most likely affect the demand for new cars for the rest of 2020.
“It is clear that automotive demand in countries that have been hard hit by the pandemic, like Spain, Italy and the UK, will probably remain relatively low for the rest of the year.” – says Zipse
Since most countries were under lockdown restrictions, industries such as the motor industry have been affected in an unpleasant manner. Factories and car dealerships were shut, causing a delay in production and car sales.
Coronavirus and the car world
Coronavirus: How can the car industry hope to recover?
As infection rates have decreased, business is slowly getting back to normal. There is hope for the car industry to recover. This might take a while, due to the effect that COVID-19 had on the economy. Many people lost their jobs and buying a brand new car might not necessarily be a priority right now.
The car industry is heavily reliant on China. 80% of global car production involves “made in China” parts. As China is carefully reopening it’s economic activity, there is hope for the car industry.
Niu Technologies, an electric scooter firm has reported on big rises in sales. The electric scooter sales were reported to be up by 61% ,which was boosted by strong sales in China.
BMW Group sales were down 20.6% globally in the first three months of 2020, including an 18% decrease in sales in Europe. But Zipse noted that global sales fell by 44% in April.
Author: Omega Fumba