Guidehouse Insights Report Shows COVID-19 Expected to Have Far-Reaching Impact on the Automotive Sector

Pandemic is likely to create poor economic conditions for vehicle sales and innovation, and attitudinal changes may hamper previous consumer trends toward shared mobility

BOULDER, Colo.--(BUSINESS WIRE)--#Automakers--A new report from Guidehouse Insights examines the potential impact of COVID-19 on the global automotive market, providing forecast analysis on overall vehicle sales, electric vehicle (EV) sales, and automated vehicle deployments.

COVID-19 has afflicted the global economy unlike anything in recent times. For the automotive sector, the impacts are expected to be far-reaching—and possibly greater than those of the 2007-2009 recession—as unemployment skyrockets and travel is restricted. Click to tweet: According to a new report from Guidehouse Insights, COVID-19 is likely to not only lead to poor economic conditions for vehicle sales and innovation, but it will also create sustained impacts on trends in telecommuting and online retail that may increase consumer trends to abandon individual vehicle ownership.

“With cash tight, oil prices low, and governments looking to recover productive capacity, manufacturers and consumers will likely turn back to familiar vehicle options initially,” says Sam Abuelsamid, principal research analyst at Guidehouse Insights. “However, as the economy recovers, governments are likely to increase pressure on tailpipe regulations, improving conditions for EVs in the long-term.”

To position for long-term success, Guidehouse Insights recommends automakers increase investment in low and zero emissions technologies and plan for expanded regulations on emissions. Automakers will need to reconsider the investment balance between electrification and automated driving, while stakeholders should expect an increase in the need for commercial vehicles that support deliveries. Additionally, transit stakeholders must attempt to recover public trust.

The report, Assessing the Coronavirus Impact on Automotive Electrification and Drive Automation, discusses the potential impact of COVID-19 on the global automotive market, providing forecast analysis on overall vehicle sales, EV sales, and Level 4+ automated vehicle deployments. This report also updates Guidehouse Insights’ latest forecast model for vehicle sales with an eye toward factoring in the potential economic and social impacts of the coronavirus and the COVID-19 disease it causes. It also provides recommendations for automotive sector stakeholders. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse

Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges with a focus on markets and clients facing transformational change, technology-driven innovation and significant regulatory pressure. Across a range of advisory, consulting, outsourcing, and technology/analytics services, we help clients create scalable, innovative solutions that prepare them for future growth and success. Headquartered in Washington DC, the company has more than 7,000 professionals in more than 50 locations. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.

* The information contained in this press release concerning the report, Assessing the Coronavirus Impact on Automotive Electrification and Drive Automation, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

Lindsay Funicello-Paul
+1.781.270.8456
lindsay.funicello.paul@guidehouse.com