“The impact of the COVID-19 pandemic has forced companies and original equipment manufacturers (OEMs) to rethink business strategies with a greater emphasis on risk mitigation, operational flexibility, and innovative customer interaction and service measures,” mentioned Marshall Martin, Industry Analyst, Automotive & Transportation at Frost & Sullivan. “With people staying indoors due to voluntary confinement or the imposed lockdown still in various regions, last-mile delivery of essential goods and services has experienced an uptick. The result is greater utilization of existing fleets and the realignment of fleet usage according to demand.”
Martin added: “Most countries resumed partial vehicle production by June, and a full recovery in production capacity is likely to take effect only during the fourth quarter of 2020. Asian countries such as China, India, and Japan, which accounted for more than 50% of global commercial vehicle production in 2019, are expected to recover faster than countries in the west, such as the United States and Germany, that are anticipated to recuperate solely by late-This fall 2020.
To mitigate dangers whereas navigating the uncertainties posed by the impression of COVID-19, market gamers can pursue the next development alternatives for every phase:
- Truck Digital Services Market: Digital freight brokerage and enterprise analytics corporations ought to leverage the present state of affairs as offline platforms are tough to entry.
- Connected Truck Telematics: Monitoring companies, contactless supply, digital PoD, and need-based companies resembling eCall, biometrics, and related companies will result in better market alternative.
- Fleet Leasing Market: Alternate powertrain truck leasing agreements will present alternatives as fleets can mitigate larger upfront prices, expertise upgrades, and residual worth threat in a nascent market.
- Electric Truck Market: Fleets ought to capitalize on authorities incentives and subsidies for electrical automobile purchases.
COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry is the newest addition to Frost & Sullivan’s Automotive & Transportation analysis and analyses out there by means of the Frost & Sullivan Leadership Council, which helps organizations establish a steady circulation of development alternatives to achieve an unpredictable future.
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COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry
SOURCE Frost & Sullivan