Car makers optimistic as consumers turned off public transport following COVID-19

With the outbreak of the COVID-19 pandemic causing commuters to reconsider their transport options, there is a growing belief that many may return to using personal vehicles as their primary form of transport.

This is the view of Ola Källenius, head of Mercedes-Benz, who has revealed that dealerships in many parts of the world are experiencing an upturn in customers as COVID-19 restrictions continue to ease.

Källenius believes the recent pandemic has reminded consumers of the safety and convenience that individual mobility offers.

“It’s too early for final assessments of the COVID-19 crisis. But there are (several key learnings) I think are important,” said Källenius.

“Now we are reminded of how important the car – our own protected, safe zone – can be. It means freedom.

“Individual mobility is valuable and should be protected, but we need to take it into the future with new technologies.”

Prior to the outbreak of COVID-19, there was a consensus across the automotive industry that consumers were turning towards ride and car-sharing services as their primary form of transport, with public transport and personal mobility technology usage also predicted to become more prevalent as cities looked to reduce road congestion.

But with showrooms already returning to regular operations, dealers are beginning to sense that things may have changed.

“Most of our showrooms around the world are now open again and customers are coming back in – especially in China,” said Källenius.

“There, we’re almost back to normal in terms of showroom traffic. So I have cautious optimism.”

New car sales in Australia were down 48.5 per cent in April, the worst monthly result since January 1994, as the COVID-19 pandemic forced customers away from the showrooms.

Source: CarAdvice | COVID-19 breathes hope into the future of cars as buyers shun mass transit

26 May 2020 

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