Impact of COVID-19 on the Global Automotive Fuel Injection Pump Market
The automotive fuel injection pumps market is expected to be impacted significantly due to the COVID-19 pandemic. The rapid spread of COVID-19 has led to government-imposed lockdowns being implemented across the globe. These lockdowns have resulted in the shutdown of manufacturing plants, due to which the production of automotive parts such as automotive fuel injection pumps has been on hold for months. Furthermore, legal and trade restrictions owing to closed borders and the limited distribution of supplies are further expected to hamper the market growth. The spread of COVID-19 is likely to have a long-term impact on the market. Along with disruptions in the initial supply and manufacturing processes, the industry is now facing uncertainty regarding the recovery timeline due to decreased demand.
As per a study by the Society of India Automobile Manufacturers (SIAM), the sales of passenger vehicles witnessed a decline of 51% to 143,014 units and the sales of commercial vehicles collapsed by 88% to 13,027 units in March 2020. This fall is attributed to the economic downturn which the consumers are facing following the pandemic. Economic hardship has changed consumer preferences and reduced spending on automobiles. Automobile manufacturers are also incurring huge financial losses due to halted production, disrupted supply chains, and cashflow constraints, thereby hampering the demand for automotive fuel injection pumps. However, with the increasing focus on maintaining personal hygiene and social distancing, the demand for vehicles is projected to increase as soon as the economic situation stabilizes, which is expected to drive the demand for automotive fuel injection pumps. Moreover, the key players’ focus on the research & development of fuel injection pumps to provide advanced features for lower fuel emissions and higher efficiency at cost-effective prices is expected to support the market growth during the coming years.
Vehicle Sales in the US, 2020 (Units in Million)
Source: Trade Economics