Digital retailing and vehicle leasing to propel automotive recovery path, says Frost & Sullivan

For further information on this analysis or to schedule an interview with the expert, please contact: Francesca Valente at [email protected] “Major Asian vehicle manufacturing countries such as China, Japan, and South Korea, which accounted for 40% of global vehicle production in 2019, are on the recovery curve. The other two major automotive manufacturing powerhouses, the U.S. and Germany, are expected to resume production partially by mid-June,” said Vigneshwaran Ramesh, Automotive & Transportation Senior Research Analyst at Frost & Sullivan. “Additionally, risk mitigation strategies such as offering financial flexibility and support to the entire ecosystem, including to dealers, suppliers and customers, will help OEMs of the world to revive.” Vignesh added: “The impact of the pandemic on the automotive sector will unlock new opportunities for other mobility verticals such as electric vehicles (EV), vehicle leasing, and connectivity solutions. EV sales will experience a medium impact as China will revive fastest from the pandemic with manufacturing plants returning to normal. Further, new vehicle leasing for the corporate segment is expected to sustain moderate growth, owing to the demand for greater flexibility and short-term contracts, whereas OEMs will emphasize connectivity services to enhance their revenue stream.” To tap into opportunities in this COVID-19 recovery era, consider the following growth prospects: — OEMs and dealers should focus on digital retailing and empower customers on their online journeys. — With the rise of eCommerce, light commercial vehicle (LCV) leasing and rental solutions are gaining traction, especially during the pandemic. — With increasing epidemic outbreaks (SARS, MERS, and COVID), OEMs can ramp up connectivity services, emphasizing the need for health, wellness and wellbeing services within the vehicle. — Contactless and touchless business concepts will leverage aftermarket opportunities, helping on-demand service models gain further momentum. — COVID-19 Growth Impact Assessment for the Automotive Industry, 2020 is part of Frost & Sullivan’s global  Automotive & Transportation Growth Partnership Service program.About Frost & Sullivan For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.