March 20, 2020
Category: Faconauto News
Vehicle taxiing scheduled for 2020 will decrease by more than 15% due to mobility restrictions.
The coronavirus continues to have important consequences for the automotive industry and dealers. Solera, an expert in automobile intelligence, estimates that the after-sales market will stop billing 19% if the State of Alarm decreed by the Government to prevent the expansion of COVID-19 extends in time two more months.
These data on the drop in activity have been obtained from the analysis of more than 4 million annual repairs in Spain. On the one hand, they are due to the slowdown in activity due to the temporary closings of the repair and maintenance businesses. Stage that also coincides with a traditionally strong time for workshops, such as Easter and the May bridge.
And, on the other hand, to the situation of house confinement and mobility restrictions. These will cause a decrease in the taxiing of vehicles of more than 15% in the whole of 2020. Therefore, it will impact the sector because the fewer kilometers are made, the less maintenance and repairs are required.
Business rebound expected in August
However, Solera’s forecasts draw a return to normality in the sector once the Alarm State ends. In this sense, a 2% business rebound is expected in the workshops in August. Fundamentally, due to the reception of postponed mechanical maintenance, as well as a summer campaign, which is usually concentrated in July. This year it will also be extended to August in order to meet the retained demand.
According to José Luis Gata, head of Solera After-Sales Market, “the forecasts for the whole of the year will have to be revised downwards and it will be easier to recover, at least in part, the mechanics area, because maintenance is postponed. But in bodywork it is a loss because the sheet metal blows that have not taken place will no longer occur ”.
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