With the complete uncertainty and dreadful concerns surrounding the topic of Coronavirus, 2020 affected every aspect of normal day life, including greatly affecting the auto industry. The uncertain expectations that the year 2020 brought to the Auto Industry led to it suffering terribly, with sales being at an all-time low around the months of March and April, when the country went into lockdown. What is interesting though, is there was a resurgence of auto sales which ended the year on an unexpected high note. Which leads to the question of why the increase in sales?
One of the reasons why the auto industry took a positive turn in the right direction would be the implementation of the Covid-19 Vaccination. The optimistic thought that the vaccination would enable consumers and businesses to return to somewhat of a “normal” lifestyle boosted the sales in the auto industry.
Another reason why sales increased would be the influx of people buying vehicles to avoid using the means of mass transit. People also found themselves in situations where they had the opportunity to escape areas heavily affected by Covid-19 and relocate. Another interesting reason why sales had increased is because people where finding more interest in purchasing light trucks vs. passenger vehicles, companies claim that they would have sold more light trucks if they had the inventory to keep up with all the orders.
Another interesting take on why the automobile industry did so well at the end of the year, would be how while some people faced economic problems others did much better economically because of not spending the amount of money they normally would on entertainment such as eating out and vacations. Therefore, leading to an increase in used vehicles being sold and luxury vehicles. It should be interesting to see what direction the future of the automobile industry goes in as the pandemic continues, but hopefully, nears an end.