Impact of COVID-19 on the Automotive Propeller Shaft Market
The COVID-19 virus has spread across the globe. In March 2020, the declaration of coronavirus as a pandemic has resulted in lockdowns being imposed in the majority of the countries. The restrictions imposed by governments of most countries have compelled the industry players to allow their employees to work remotely. However, the adoption of automated technologies to reduce human interaction in manufacturing facilities is expected to support the growth of the automotive propeller shaft market. The use of advanced technologies, including automated machinery during the pandemic, has not only ensured the continuity of businesses but has also allowed for enhanced work productivity.
Several emerging and developed economies have enforced countrywide partial or complete lockdowns to maintain social distancing. The majority of the retail outlets and e-commerce services were shut down to curb the spread of the pandemic. The manufacturing of automotive components and the provision of related services was restricted to permitted limits under the lockdown. The production of automotive propeller shafts was also affected, resulting in a demand and supply gap. The COVID-19 pandemic has affected the supply chains, limiting the growth of the global automotive market. These factors have severely impacted the global economy and the revenue generation of the automotive industry.
The manufacturing of vehicles plays a vital role in generating demand for automotive parts such as propeller shafts, owing to their use in vehicle assembly and maintenance. The figure below shows the total vehicle sales in the US from January 2020 to May 2020, which is expected to influence the automotive propeller shafts market over the projected timeframe.
vehicle sales in the us, 2020 (Units IN Million)
According to the MRF analysis, the market is expected to witness a decline in the coming year, which will hamper the demand for automotive propeller shafts across the globe. The market is expected to recover in the Q4 of 2020. Industry participants are expected to increase their production capacities with the stabilizing market scenario over the forecast timeframe. Moreover, the European Automobile Manufacturers Association (ACEA), the Canadian Automobile Association (CAA), and other international associations, such as the Japan Automobile Manufacturers Association (JAMA), have suggested multiple measures for controlling the spread of COVID-19.
Source: Trade Economics