Impact of COVID-19 on the Automotive HVAC Market
The automotive sector registered a severe decline in vehicle production and sales amidst the Covid-19 period due to unexceptional lockdowns resulting in slowing the growth of the economy across the globe. The lockdown measures have further affected the supply chains of components and raw materials required for the automotive HVAC industry. Several industry players Automakers in countries such as the US, India, and Japan along with regions including Europe have suspended their operational activities considerably disrupting the production rates. Several OEMs are involved in implementing multiple strategies to ease the effect of Covid-19 impact on their revenue generation. Industry players focus on reducing their inventory by targeting high sales and enhanced services in open markets that will positively influence the automotive HVAC market share over the forecast timeframe.
A major slowdown of trade among countries along with temporary closure of manufacturing facilities owing to the rising pandemic situation has substantially affected the automotive HVAC sector. The increasing COVID-19 impact has placed immense pressure coupled with rising competition among industry players across the globe. This will further compel industry players to involve in strategic mergers and acquisitions to cope with survival in the industry with the increasing pressure and deteriorating market revenue.
Industry players and contributors are engaged in taking several measures for operational safety that include regular health updates, temperature screening, and reconfiguring assembly lines for improving social distancing among employees. Moreover, few manufactures are also taking strict measures including voluntary blood testing to verify the virus exposure to reduce the pandemic impact. Moreover, Multiple OEMs in the US are planning to reinitiate the production in the coming days that will support the automotive HVAC market growth. Some industry players along with tier 2 and tier 3 suppliers in China have already started the manufacturing operations following the measures required to reduce the Covid-19 impact on the company premises. The rising awareness regarding the Covid-19 and stringent measures taken by government bodies across the globe will substantially support the automotive HVAC product growth.