Automotive manufacturers have to entice consumers back into the new vehicle market despite strong evidence to suggest that vehicle demand was already headed for a downturn. Industry forecasters are now expecting global new vehicle sales to total just more than 70 million units in 2020, a downgrade of 18.5 million light vehicles
In a report, Deloitte said everyone in the automotive supply chain is feeling the pressure of the disruptive pandemic and recovery will take time, even as local jurisdictions start to reopen. We retain 3 takeaways on the future:
1. Shared mobility will recover from rider anxiety
While many public transit leaders fear that ridership will not rebound as people continue to stay away, the report says there will be many consumers who return to shared transportation services in time.
2. Congestion worries may be eased by teleworking
Fears of increased congestion in cities are building as more travelers opt to get around in personal vehicles. It will take time, but once recovery is underway, there will be a “self-correcting mechanism that will create the right dynamics” for traveling without too much increased congestion.
3. Consumers will pay for safety features on new cars
The deployment and growth of autonomous vehicle (AV) usage continues to be a major question mark over the future of cities, but while the promise of AVs is exciting, the report said we still have a long way to go before fully autonomous cars are on the streets. Instead, consumers will continue to pay for technology that enhances safety like ADAS.