Automotive industry players in Turkey forecast up to 8 million used car sales by 2020, as pre-pandemic shortages of new cars are exacerbated by chain disruptions attributed to the virus. Some 2. 1 million soft advertising cars and cars were sold in the first quarter of the year, putting the market on track to surpass the record 7. 6 million aircraft sold in 2019.
While many citizens of Turkey’s major cities are abandoning public transport in favour of passenger cars, used car costs increased by nearly 10% between mid-April and mid-May.
Meanwhile, a July survey through the OLX Indonesia online classified ads page found that 54% of respondents in Southeast Asia’s largest economy were considering buying a used vehicle instead of a new one.
Elsewhere, used vehicle sales fell by 38% year-on-year (year-over-year) in April because blockades were imposed across the United States, but efforts to reopen the economy in June saw used car sales exceed prepandemic forecasts by 17%, according to automotive company JD Power.
While customer trends earlier in the year involve a shift to used vehicles, many dealers and automakers are actively incorporating their online sales channels and other virtual equipment to increase purchases of new units. worry about lowering your profitability.
AutoNation, the largest auto retailer in the U. S. The U. S. , recently invested in expanding its online offerings and offered a door-to-door delivery service, eliminating consumers’ desire to make a stop in a showroom. “For the digital, this eraArray totally disruptive . . . it’s a turning point from which there’s no turning back,” Mike Jackson, autoNation’s CEO and CEO, told investors in May.
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Reflecting a more significant replacement in retail, some corporations reported an acceleration in online sales due to the pandemic. Automotive organization 1 saw its online sales nearly triple its total sales percentage to 7. 3% in April from 2. 5% before the pandemic. At the same time, the percentage of vehicle deliveries quadrupled from 5% to 20%.
The growing popularity of used cars provides opportunities for new and established players to gain participation in the virtual market; however, with interrupted lines and reduced overall demand, the weakest functionality in the industry continued in the current part of 2020.
Global passenger car sales fell by about 7% year-on-year in July, according to global commercial studies company Counterpoint, even when some countries record monthly recoveries after the reopening of economies. year-on-year sales remained under pressure in the United States, Europe, India and Japan.
As OBG noted in June, the drop in car sales was mainly due to the economic effect of the pandemic, as a sharp increase in global unemployment led to a significant decline in customer spending.
This trend was aggravated by delays in the supply chain: brands may simply not obtain raw fabrics and portions of closed production facilities in China and other hard-hit countries.
While the economic consequences of the Covid-19 pandemic are expected to have a negative effect on the automotive industry in the short term, switching to used cars and efforts to digitize sales and facilities will give distributors and brands the opportunity to adapt. to convert retail dynamics.
By Oxford Business Group
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