What was the Impact of Coronavirus on the Automotive Industry

Coronavirus Impact Study from OSS

The After Sales Market, which Shrank 30 Percent in March, Expects a 54 Percent Contraction in April

The Automotive Aftermarket Products and Services Association (OSS) conducted a survey on the effects of the coronavirus outbreak on the automotive aftermarket industry. According to the survey, 48,8 percent of the sector stated that they switched from home to work, while 56 percent reported that they continued to work in shifts in accordance with social distance rules. In this period, the ratio of the automotive after-sales sector members who applied to the Short Work Allowance was 55 percent on average. The survey results reveal that the automotive aftermarket sector suffered a 30 percent loss in March due to the outbreak, while this loss is expected to increase to 54 percent in April. On the other hand, sector representatives envisage the problems that the sector will experience due to coronavirus to continue until the end of June.

The New Type Coronavirus (Covid-19) epidemic, which slowed the wheels in the automotive main industry, also affected the after-sales sector. The Automotive Aftermarket Products and Services Association (OSS), which gathers the automotive aftermarket organizations under the same roof, conducted a special survey to investigate the effects of the epidemic on the automotive aftermarket industry. Accordingly, 48,8 percent of the OSS members who participated in the survey stated that they switched from home to work, while 56 percent reported that they continued to work in shifts in accordance with social distance rules. The ratio of the members of the after-sales sector, who stated that they had stopped the study, was 9,6 percent.

The biggest problem is loss of business and turnover

In this process, the biggest problems observed for the automotive aftermarket sector were the loss of turnover, low motivation and cash flow problems. According to the OSS survey, 92 percent of the after-sales sector stated that the biggest problem experienced was loss of business and turnover. The ratio of the sector members stating that the loss of motivation among the employees is among the biggest problems was 68 percent, and the rate of the members who stated that the problems experienced in cash flow were seen as the biggest problem was 62,4 percent. Problems in customs and supply problems were among other problems.

54 percent contraction expected in April

In the automotive market, the decline experienced in the second half of March was also observed in the after-sales market. According to the survey, the aftermarket market lost 30 percent on average in March. The after-sales sector, which also shared the April and May predictions in the survey, merged at the point that the main contraction will take place in April. Accordingly, industry members stated that they predicted a 54 percent market shrinkage in April. The members estimated the contraction in May to be 47 percent. In addition, while the rate of sector representatives indicating that the contraction experienced with the coronavirus effect will continue until the end of June, the rate of sector representatives pointing to the post of June was 28,6 percent.

75 percent of the industry took precaution

According to the OSS survey, after-sales sector representatives started to take measures for the problems that the New Type Coronary virus epidemic will cause in the cash flow. Accordingly, an average of 75 percent of the aftermarket sector stated that it took additional measures against cash flow shortages. 25 percent said they have not yet taken any measures for cash flow. On the other hand, the proportion of members of the automotive aftermarket sector that applied to the İŞKUR Short Work Allowance announced under the Economic Stability Shield was 55 percent on average. 45 percent of the members stated that they have not yet applied for this allowance.

Excluded from postponement, the sector is waiting for urgent regulation

OSS Chairman of the Board Ziya Özalp said, “In this period, we receive intense feedback from our members that new incentive packages that will ease the sector should be announced. Until the end of June of the processzamThe strong possibility of a indicates that we will have serious problems in cash flow and logistics. In particular, the fact that the decision to postpone the Withholding and Value Added Tax for 6 months does not cover the companies that sell spare parts, negatively impacts our industry. On the other hand, delaying the repayment of SME loans for a minimum of 90 days and the introduction of a new KGF package for SMEs are among the primary expectations of our members ”.

Source: hibya news agency

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