Covid-19: impact on OE suppliers and expected benefit for aftermarket


Car plants are reopening, but the effects of the coronavirus pandemic are far from over. Supply chains will feel the consequences of social distancing on their production lines. With fewer people doing the same work as before, the same production will just take longer. This puts pressure on profits. Manufacturers reduced activity will immediately have an impact on their suppliers, especially the ones who manufacture OEM parts, as “just in time delivery” continues.

After sales in the lift?

Indeed, consumers are more hesitant and defer new car purchases, which will raise demand for car servicing. Also, reservations about the safety of public transport in Covid-19 times will incite car owners to drive to work, and this means also more glass breakages and demand for vehicle repairs. This is very good news for the service sector to be added to the fact that independent fitters were actively sought out by motorists left unsupported by the mass closure of franchised dealers during lockdown.