Hitachi Capital Vehicle Solutions (HCVS) has written a blog on the implications placed on the automotive industry by the current COVID-19 restrictions.
Among the key implications of what we have seen so far, says HCVS, are the following:
- Environment: Delayed CAZ/ULEZ launches – will affect air quality but provides fleets more time to prepare. Greater use of video conferencing and changed work patterns may also play a role in reducing the impact of the car
- Financial: Reduced second-hand values and restructured insurance models. In the future, insurance models need to reflect changing mobility requirements.
- Operations: A strain on the availability of vehicles/parts with new delivery and collection processes disrupted. In the short term, stock vehicle release will plug the shortfall of availability. However, repairs may take longer to complete with the average downtime per vehicle costing some businesses up to £800 per day.
- Strategic: There will be better asset utilisation and increased fleet flexibility deigned to fit the new way of living.
Chris Swallow, national sales manager (indirect) commented:
“At the end of the day, while the economic uncertainty and restrictions on movement resulting from COVID-19 are far from easy to deal with, they can also be the mother of invention and that, if nothing else, is a little bit of good news amongst the chaos.”
The above is a short version of some useful insight. To read the blog in full, click here: How is Covid-19 changing the automotive industry?
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
