Coronavirus Effects on the Automotive Industry - Asia Times

The auto industry sustains a notable load in the Spanish industrial vista. Spain is Europe’s next highest auto manufacturer after Germany and the leading purveyor of industrial autos and the eighth-largest manufacturer in the world. Spanish automotive industry is an imperative area of the country and approximately represents 10% of the country’s GDP. Moreover, around 87 % of all vehicles and components produced in the country are exported out of the country. Check out the reviews on all Spanish automotive companies in OpinionesEspana which collects the reviews of people at one place.  

The auto manufacturing industry in Spain comprises nine producers encompassing Ford, Seat/Audi,  Volkswagen, Nissan, Mercedes-Benz, Opel, the PSA Group, Renault, and Iveco, with 17 plants and a distribution channel covering around 1,000 corporations committed to the production of parts and accessories. Here you can find the ground of the issues the industry has been facing recently.

Continuous Downfall:

However, the importance of the industry is on one side, but its continuous downfall is another issue in the preservation of the industry’s contribution in the economic arena. And the diminishing demand for these cars has created a serious challenge to the industry. Diminishing customer’s interest in owning a car in Spain is linked with the Coronavirus pandemic but the shift to electric and hybrid cars is an unignoring aspect in decreased demand. 

The Covid-19 pandemic has been an important factor in the change of customer’s behavior change towards the vehicle market. With the diminishing demand, the export of cars, parts, and components also declined at a considerable level. 

Long-standing pain points other than COVID-19:

Nevertheless, there are long-standing pain points other than COVID-19 that endanger the future expansion of this industry, including important competition from outside, more gradual growth in new vehicle registrations in Europe, and skepticism about the most reliable alternative technology for automobiles. 

The electrified cars are yet not a great option for some of the public. Since the shortage of charging infrastructure and inadequate driving area are viewed as the foremost concern of the buyers in many countries concerning the electrified vehicles. The declining demand for electric and hybrid cars is supposed to be short-lived and the desire for this nature of the engine will return.

Competitive Environment:

Another reason for the decline of the automotive industry is the competitive environment in the car market. Eastern Europe manufacturers are proving to be tough competition for Spain’s car industry. With the growing consumer demand and falling profit margins, Spain’s vehicle production is at knifepoint from cut-rate labor not only in bordering Eastern and central Europe but also in Asia. And no wonder, Spanish industry is highly vulnerable to the Asian automobile industry since the Asian industry produces cheaper cars as compared to the Spanish ones. 

As Spanish exports are extremely focused in Europe including the UK, Germany, Italy, France. In general, it is contemplated a contrite feature that market registration occurs at a slower extent than expected extension or is impacted by unexpected events like Brexit. Since the decline in the registration was observed in the UK.  And the survival of the industry entirely depends on dealing with this challenging situation regarding the customer’s demand not only in the European Union context but at the world level.

Next Post

Best Places For Your Family Trip In Dubai.

There are many tourist spots and destinations that you can visit in Dubai and this city is one of them. This city has a lot to offer to travelers from water parks to shopping and so on. There are many family places to be explored by the families in Dubai. […]