Here is a simple take
Even if the service is online and no contacts are occurring, there are still people behind the screens who can be affected by the Coronavirus. Every worker plays a vital role in a company.
President Duterte orders lockdown of Philippine capital Manila to fight coronavirus outbreak
This worker may be; a sales representative who front lines in the buying and selling of cars, a digital marketer who helps increase the sales, and of course the supplier of cars.
This being said, there may be inefficiency with the workers. What's worse is workers have to be skip work and admit themselves to the local health representatives.
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Every worker in the industry is affected, not only the people working in the factory
The buyers of the cars online affect the online car sales big time because rather than looking for what cars they should buy or try out next, they focus on health and safety.
Staying out of home these days is a risk already, how much more interacting with people in the auto industry.
Crisis in the world’s factory
If you haven’t heard it yet, China is known as the world’s factory due to low labor costs, a strong business ecosystem, and many more.
Since China is the ground zero of the coronavirus, the world’s largest manufacturer is affected the most. In short, the supply chain shortage can be felt all over the world.
China plays a big role in the global industry
Imagine buying a deck of cards but is missing one card. In the auto industry, even if you have 99% of the parts but are missing one, then it can’t be declared a roadworthy car – meaning, manufacturers cannot release the cars for mainly safety reasons.
If the epidemic continues to grow, it will cause more impact in the auto industry because many of the parts are made from China.
>>> Relevant articles:
- Hyundai halts Korean operations due to coronavirus outbreak
- Several car industry manufacturers withdraw their employees from China due to coronavirus
Lack of online feed
Have you ever had an episode where you are not hungry but because of a food ad you saw online, you suddenly crave and bought the food? In every ad posted online, there is a good chance that in ten people, one might be interested.
As long as the virus keeps on spreading, more people will see ads or articles related to the coronavirus rather than car ads.
Not everyone who buys cars online intentionally searched for the cars they bought. Some are persuaded by the marketing strategy of an online car company.
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We have to wait for further announcements
Here in the Philippines, the cancellation of the Manila International Auto Show definitely took a toll on the auto industry. A lot of new cars are introduced and sold on this show.
Since the virus is around, MIAS has to postpone. Cars displayed on the show are marketed unintentionally by approximately 130,000 people posting with the car, creating contents, gaining insights, and even by vlogging.
Without all these things playing in the auto industry, expect more decline in the sales of the industry. Surely, most people will buy cars after the epidemic is over. For now, it really is a compromise.
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