With stationary vehicle manufacturing plants, dealerships and auto parts stores closed, and workshops running with minimal services to cover urgent cases, the automotive sector suffers from the coronavirus pandemic. The consequences are still difficult to assess, but the first studies that do not augur an unclear future are already taking shape.
Thus, 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, according to the report carried out by Solera.
These data on the drop in activity-obtained from the analysis of more than 4 million repairs per year in Spain-are due, on the one hand, to the slowdown in activity due to the temporary closings of the repair and maintenance businesses, which also coincides with an era traditionally strong for workshops, such as Easter and the May bridge.
And, on the other hand, to the situation of confinement in homes and mobility restrictions, which will cause a decrease in the taxiing of vehicles of more than 15% in the whole of 2020, which will impact the sector as many Fewer kilometers are done, less maintenance and repairs are required.
According to José Luis Gata, head of the 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 mechanical 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 ”.
However, the forecasts draw a return to normality in the sector once the Alarm State concludes. In this sense, a 2% business rebound is expected in the workshops in August, due to the reception of postponed mechanical maintenance, as well as a summer campaign, which is usually concentrated in July, and which this year also it will be extended to August in order to meet the demand held. .