Impact of COVID-19 on the Hybrid System in Automotive Market
The COVID-19 outbreak has had disastrous effects on the global economy as many industries have been affected by the current circumstances, and operations of various sectors have come to a standstill. The Coronavirus pandemic has impacted all industries across the globe, with the hybrid vehicles market being no exception. The governments of various countries have imposed lockdowns that have forced people to stay at home, which, in turn, has minimized the physical interaction among people. Most companies have allowed employees to work remotely from their homes to ensure business continuity during the COVID-19 pandemic, which is expected to hamper the growth of the hybrid systems in the automotive market over the forecast timeframe. The increasing focus on remote working has restricted the growth of the automotive industry, which, in turn, will limit the growth of the hybrid systems in the automotive market.
Manufacturers are facing downward pressure on demand, production, and revenues due to the COVID-19 pandemic. So, manufacturers should be prepared for major global supply chain disruptions. However, the hybrid systems in the automotive market has been positively influenced by the strict regulations regarding carbon emissions, surging sales of electric vehicles, and the surge in fuel prices. The rising preference for electric vehicles is leading to the higher deployment of hybrid systems in vehicles, which could be a great success for the global market. However, the restrictions on public gatherings along with travel bans in several countries are expected to hinder the growth of the hybrid systems in the automotive market over the forecast timeframe.
TOTAL NUMBER OF ELECTRIC vehicles ON THE ROAD, 2014–2020 (Units in MILLION)
The figure above shows the statistics for the number of electric vehicles on the road globally from 2014 to 2020. The number of EVs on the road is expected to reach almost 10 million this year, as sales are growing despite the COVID-19 pandemic, which would account for a record 3% of the total global car sales. That means the COVID-19 pandemic will affect the global electric vehicles market, although to a lesser extent than it will the overall passenger car market. Thus, the hybrid systems in the automotive market holds a robust position due to a surge in demand for electric vehicles among customers.
Source: International Energy Agency