Japanese car manufacturers, as well as those in the other countries, have experienced vehicle ownership rates drop consistently for the past several years due to better public transport and the spread of the 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 car-sharing services. Now they prefer a private car instead of riding in a taxi or public transport.
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. People 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 move around without worrying about their health.
Now, automotive manufacturers around the globe have been making necessary changes in their vehicle design and marketing efforts to emphasize the health issues for their would-be customers.