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The automotive industry will take more than a year to recover from the negative impact of Covid-19 and the lockdowns.
That’s according to more than 2 600 respondents across the motor industry who participated in the Lightstone Confidence Indicator in September. Lightstone is a trusted advisor to the automotive industry and the Confidence Indicator surveyed OEMs, dealerships and MBRs.
The survey results reflect how positive activity levels increased to 5,1% versus 4,1% in August. Predictions for the upcoming 3-6 months have also improved to the highest level since June this year. “While respondents feel more positive about the future with business gradually improving, the overall sentiment is that the market is still quiet as consumers are struggling financially, banks are not approving financed deals and the activity received from insurance companies is low,” says Lightstone’s Mark Groch.
72% of respondents say business would need more than 9 months to recover from the impact of Covid-19, while 59% of OEMs and 56% of ‘other’ anticipate recovery would take more than a year. Respondents feel the factors most likely to positively impact future activity include:
The survey results are available monthly and additionally to auto specific results, also include measuring the Covid-19 impact on finance and liquidity, workforce, operations and supply chain, and strategy and brand as well as how businesses have adapted to the new digital way of working.
Click here for the complete Lightstone Confidence Indicator.