How The Pandemic Affected The Automotive Industry

The automotive industry drastically slumped in the early months of the pandemic, but since then, car sales and production have made an impressive recovery. In February 2020, sales declined by 71%, and by April, sales were down 47% in the US and 80% in Europe. However, behind the scenes, the industry never skipped a beat. Between the third quarter of 2020 through the first quarter of 2021, automakers globally have seen impressive (in some cases record) levels of production.  And trends that were brewing prior to the pandemic became pivotal all of a sudden.

The ability to buy and design cars online became very important during the pandemic. When dealerships could no longer meet with potential buyers in person, having a suite of digital options to buy cars was necessary. And ancillary services such as financing and insuring cars also shifted online with the rest of the buying process.

While some auto dealerships moved away from in-person buying after pandemic restrictions were lifted, many of them have opened back up and buyers have started flocking to them. Many people still want to be there in person to buy a car. So, while the media has broadcasted the ‘death of dealership model’, that sentiment has been largely exaggerated for the most part. In fact, most dealerships now rely on a complimentary digital and in-person buying experience.

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