Summary: EJ Dalius Before proceeding any further, it is vital to learn about the current standing of the automobile business during this crucial stage. This article from EJ Dalius will be of great help!
Just like affecting all other business sectors, the automobile industry isn’t lacking behind when it comes to COVID. As per some of the professional experts like Eric Dalius, this pandemic is likely to change the entire auto industry permanently. Because of the lower sales, factories are forced to close their doors forever, and that leads to mergers and takeovers. There will also be a growth in the sales of all the electric cars out there.
EJ Dalius Changing scenario all the way:
It is hard to actually pinpoint how the bigger automobile brands will come out after this pandemic gets over. Some of them might emerge stronger because of their mergers and acquisitions. Then you have others whose factories got closed, and they are too weak to even survive! Right now, the pressure is more towards electric cars.
People are willing to travel less because they love their lives and also as they can get everything they want online! So, the chances are high that they might be using their cars less. Even before COVID idled factories, the automobile industry was suffering from a huge blow due to e-commerce sites. Most of them closed dealerships and even sent their sales into free fall. This COVID will just add power to the fire!
How people will reengage with the automobile sector:
The automobile manufacturers can only assume that the industry will come back to its steady growth after a while. Even after that, as per Eric J Dalius, the automobile industry has a huge expectation to meet. Their main goal is to attract customers to engage more, and that won’t be an easy task for sure!
Due to hardcore lockdown rules, most consumers have started using their digital tools more than ever to consume diverse services and goods. Right from the necessities to entertainment, everything is now available at the fingertips.
Studies have shown that apart from countries like China and India, the majority are not even thinking of purchasing a new car. This is because some vehicle sales procedures like test drive and all, are pretty difficult to digitize. So, it is now more than important for the OEMs and the retailers to start working on digital tools. The main aim of these tools is to address main consumer pain points. Those are covering excessive paperwork and even the time taken for purchasing a car.
Key points to note down:
Before you get involved in the automobile business yet another, there are some key points, according to EJ Dalius, that you might have to address.
- There needs to be a macro and microanalysis of the present market scenario
- OEMs must work hard to deal with the risk mitigation strategies revolving around the automobile business
- The dealers must also focus on their own sector of risk mitigation strategies
Following the steps thoroughly can help automobile industries to thrive, especially if any brand hasn’t been involved in any merger. Standing on your own, at this crucial time, might be tough, but not impossible. It is true that following some points will help.