Impact of COVID-19 on the Automotive Timing Belt Market
The increasing cases of COVID-19 have led to stringent measures being imposed by government authorities. Nationwide, partial, or complete lockdowns were forced by several emerging and developed countries to minimize the COVID-19 infection rates. The manufacturing of automotive components and the provision of services was restricted to permissible limits under the lockdowns. Several retail stores, along with e-commerce services, were shut down for the specified period. The following factors have severely impacted the global economy as well as the automotive market revenue. The production of automotive timing belts was abandoned, resulting in a huge demand and supply gap. The COVID-19 pandemic has disrupted the supply chains of multiple automotive timing belt manufacturers, in turn, affecting the global automotive industry. Several Companies are also facing liquidity issues that may result in the complete shutdown of their production facilities. However, companies with strong financial support continued with their manufacturing operations during the pandemic. The manufacturing of vehicles across the globe plays a vital role in generating the demand for automotive parts, including timing belts owing to their requirement during vehicle assembly and maintenance. The figure below shows the total car production in the U.S. that will significantly increase the automotive timing belts market share.
Car Production in the U.S., 2020 (Units in Million)
According to the MRF analysis, the increased chances of an economic recession in the coming year will put additional pressure on the automotive timing belts market players. Some of the key industry participants that are expected to account for large market shares in terms of revenue include Continental (Germany), SKF (Sweden), and BorgWarner (U.S.). The market is expected to recover in the Q1 of 2021. Manufacturers are expected to increase their production capacities with the stabilization of the market scenario over the projected timeframe. Moreover, International associations, including the Japan Automobile Manufacturers Association (JAMA), European Automobile Manufacturers Association (ACEA), and Canadian Automobile Association (CAA), have provided measures and guidance for avoiding the spread of COVID-19, which will help support the market growth.
Source: Trade Economics