Japanese car manufacturers, as well as those in other countries, have experienced vehicle ownership rates drop consistently for the past several years due to better public transport and the spread of ride-sharing services in many countries of the world.
However, the COVID-19 pandemic has changed the mechanics of the global car industry. Now, a countless number of people have started buying cars so that they could avoid the coronavirus disease transmission by not using public transport, taxi service, or any other car-sharing arrangements. Now they prefer a private car instead of riding in a taxi or public transport such as a train or bus. The Japanese public has followed the suit. Now, many paper drivers are becoming active in driving their cars to and from their places of work.
After reopening its economy, now China has become the fastest-growing car market. People there prefer private cars instead of using public transport due to health concerns.
By looking at the automotive industry`s long term outlook, we may not get a rosy picture. However, the emerging trends in car buying surge as a result of the COVID-19 pandemic indicate that there might be a surge in demand by consumers as people now are more health-conscious and do not want to use public transport.
Revenge buying. The OVID-19 pandemic lockdowns have significantly changed the behavior of people. Now, they are tired of sitting in their homes. They want to get out of their homes, go here and there but are still afraid to mix with other people freely. The only option available to them is actually purchasing a car and moving around without worrying about their health.
Now, Japanese automotive manufacturers have been making necessary changes in their vehicle design and marketing efforts to emphasize the health issues for their would-be customers. The move will help bring back a lot of people start buying cars for their use to commute.