SHOPSHART AUTOS – CUSTOMER INFORMATION – NOVEMBER 15, 2021 -1
2021 Automotive Industry Challenges and Trends
The COVID-19 pandemic has changed a lot in the development of all industries including the automotive sphere. In fact, the automotive industry has a significant impact on the world’s economy as it provides jobs to about 14 million people in the EU, 8 million in the US, and 5 million in China, is a ‘bridge’ between suppliers and manufacturers as well as manufacturers and customers. Let’s see how the industry is recovering from tough times in 2021 and what trends are leading this year. COVID-19 Challenges Automotive Industry is Facing in 2021 As 2020 was the year of pandemic restrictions, most factories were shut down, the supply chain was disrupted, and companies suffered extensive losses. For example, the UK automotive factories’ gain reduced by 29% for just a year. For sure, the British economy has been significantly affected by Brexit, so these figures are the result of two challenges: Brexit itself and the pandemic. But the British automotive industry is not near the single in the whole world hit by COVID-19. “The Western European automobile market will need about 10 years to reach the size of 2019 again.” – says Prof. Ferdinand Dudenhoeffer Director of Germany’s Center for Automotive Research. At the same time, while the whole world is suffering huge losses due to shutdowns, the Chinese automotive industry has been fruitfully developing after a couple of months of deadtime at the beginning of 2020. According to multiple sources, China’s going to be the leader in the automotive industry for the upcoming years. It produces 48.9 vehicles every minute while Toyota manufactures only 20 per 1 minute. The infographics show how many vehicles each country produces every minute. As we can see, China is way ahead. Besides, according to the China Association of Automobile Manufacturers, their sales of energy vehicles (EV) are expected to increase in 400,000 vehicles by 2021 as compared to 2020. Therefore, the main challenge in 2021 as a result of the pandemic is to restore production and sales and compete for world leadership. This also creates resource challenges in the automotive industry, because the number of projects is growing day by day while the number of qualified employees remains the same. Project management in the automotive industry becomes more and more complex year after year. The number of employees will drop in 2022 because of the virus, retirements and EV vehicles.
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