Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
Jasmine  Watson

Jasmine Watson Finance Adviser

Exclusive Blog Posts

Is the Service Department Keeping Customer Data Secure?

Is the Service Department Keeping Customer Data Secure?

A quick visit to the dealership for an oil change isn’t exactly the riskiest behavior someone can engage in. The routine procedure should do noth…

Evolution of a Dealership's Fixed Operations with Dave Foy | KPI Cafe Season 6 Episode 1

Evolution of a Dealership's Fixed Operations with Dave Foy | KPI Cafe Season 6 Episode 1

To kick off our newest season that's all about your dealership's fixed operations, Host Dane Saville is joined by the Fixed Ops Mastermind Dave Foy…

WEBINAR RECORDING - Five Ways to Grow Your Profits in the Second Half of 2020

WEBINAR RECORDING - Five Ways to Grow Your Profits in the Second Half of 2020

Discover strategies to identify and capture additional profit on every car deal. After months of uncertainty, we are seeing dealerships open their do…

Rock’s Rants: Purchase Orders

Rock’s Rants: Purchase Orders

Does your dealership have a purchase order (PO) system? Often when I ask this question in dealerships the answer is, “Sort of.” When I dig deep…

Even Loyal Dealership Service Customers Buy Tires Elsewhere

Even Loyal Dealership Service Customers Buy Tires Elsewhere

It’s widely known that dealerships still have a lot of ground to make up when it comes to selling tires. According to Modern Tire Dealer, auto dealer…

What Will Be The Future Of Auto Industry After Pandemic

Due to COVID-19 or novel coronavirus, the whole world gets influence from it. The most affected place is the Auto business industry. Many auto industries won’t be able to run the firm because they do not have enough money to run it. Even in the worst cases, they find it hard to manage the cost of a month.

The above scenario shows the current condition of the auto industry is worse. And, such things never occur in the past too. The reason for the current downfall situation is:

  1. Low demand or negligible


  1. High manufacturing cost


  1. High labor charge

These are the reasons that are rupturing the auto industry. But now the question arises, what will be the auto industry's future after this global crisis?

To get the answer, we have offered you the size of the problems, like in long, short and medium terms. The auto industry is vast, and it runs due to the corporation of many small and large enterprises.

Auto Industry Affected For SHORT Term


First, look at the short term and see which parts get influenced in the coming time.


The supplier part maybe gets hampered in the future, and we can expect the declination in the supplier's quantity. The products generally build from the industries, and due to social distancing, one has to maintain the gap, which leads them to increase the space or to reduce the number of employees.

Now, for the first case, it may be possible to manage, but it can generate a considerable cost to increase the area. In most of the cases, to save money, one has to reduce employers, that reduce the production, and prices of the components get high. You can consider it a loop. So, this would be the biggest challenge for a short period.


The coronavirus affected life in both physically and mentally. It plays with our physiology and creates a different world. And, in this, most people may try to get the work from the home method for at least a few months, this may create a problem for the employers or owners because not every task can be manageable from home.

These are the two effects that the auto industry may face during the short period. Now, look at the medium-term effects.

Auto Industry Affected For MEDIUM Term

Two parts may need time to recover from such pandemic.


This global crisis clearly shows that no one can be going to make the hefty purchasing at this period. Buying vehicles need excellent financial support, and due to terrible jobless ratio reflects, no one is going to purchase this at for more than a year.

Suddenly reducing the demand will down the motivation of dealers. Most of the dealers may not want to pursue this field and leave this field. When the dealers get low, they may not find a source to sell the customer directly. They need dealers.


The auto industry is the part of every business, from cab service to personal use. Most people use cab service because it is easy to access, even from the last couple of years, cab services are on the peak. But due to t the corona effect, the driver won't find it safe.

Though small cab services bear the cost of them because they do not want to lose them, they choose Easy loans to manage the price, but the question is, how long? Most of the people now looking for home-based work for better security. This will automatically reduce mobility, and if the mobility gets reduces, then the auto industry will never rise again.

These are the medium effects and see the long term effects of the auto industry.

Auto Industry Affected For LONG Term

There is three long terms effect of coronavirus pandemic.

Disruption in production 

Production may get lower down as have discussed, but it can turn to be long term because of the removal of temporary employers for a more extended period. Hiring will be less, and leaving the company will get high. Due to this imbalance, the whole industry will get-go down, and it may take time to gain stability.

A sudden increase in demand 

It is impossible to predict the time when the demand goes high. But sudden desire may put industry to go in trouble. Lack of laborers and other things will not lead them to finish the production on time. This could be the heinous part that may remain for a more extended period of more than two to five years.

Trade may get affected 

Import and export may get down because due to poor economic conditions, countries won't spend money on trading. They can build the factories on their land, and generate employment and bring back the stability in a short period.

Now, when this occurs, the whole trading system will collapse, which leads to a poor relationship between borders and won't grow.

These are detailed or say future analysis of the auto industry. This can happen if the industry does not come with a unique solution. If they ignore the situation, then many people may lose their job, and that increase unemployment and the whole world's economy may get into depression.

 Unlock all of the community & features  Join Now