• Friday, July 01, 2022

Business

How Covid-19 is Impacting the Automotive Industry

By: Murtuza Nullwala

Businesses in every industry are feeling the effects of the coronavirus pandemic this year and there are sure to be a number of long-term effects even once the threat has passed. One industry which has certainly been hit is the automotive industry – an industry which was already struggling prior to the outbreak.

Grinding to a Halt

The demand for automobiles was dropping already for a handful of reasons in the UK, including Brexit, economic uncertainty and a lack in consumer confidence, but things ground to a halt with the arrival of Covid-19 and the Government-enforced lockdown. The auto industry faces immense challenges going forwards, which are likely to involve a recession which will certainly take its toll.

The Future

It is hard to predict what the future holds and what the auto industry will do, but some believe that there could be a resurgence of individual transportation as people will not want to use public transport and ride-sharing. It will not be quite this simple, though, as the impact of an increase in unemployment and reduced income will impact automotive sales.

Innovation from Skoda

It is clear that brands will have to be innovative going forwards and find ways to adapt to the situation as it unfolds. One company that is already doing this is Skoda, who are planning digital launches for models that were already supposed to be launched but put on hold due to the lockdown. Skoda plans to launch revamped Rapid, the Skoda Superb and the highly anticipated new Karoq.

The All-New Karoq

From what is known about the new Karoq, it seems to share a similar design with its predecessor with its signature butterfly grille and swept-back LED headlamps and initially it will only be available in one variant (although there are 6 colours to choose from). It will be propelled by a BS6-compliant 1.5-litre TSI petrol engine capable of 148bpm and 250 Nm of torque.

Used Cars

Of course, it is easy to see people shopping in the used car market as opposed to buying new once lockdown regulations ease as this is much more affordable. When motorists shop here, it is important they take out an extended warranty from somewhere like ALA which will provide financial protection if they were to breakdown.

It is a troubling time for the automotive industry and hard to predict what the future holds, but businesses will need to adapt and be innovative like Skoda in order to succeed and it will be interesting to see how companies achieve this in the coming months.

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