Jan 08, 2021 Lightstone, MyEcho, Mark Groch, online tools
After the President announced the lift in restrictions from Lockdown Level 4 to Level 3 earlier this month, many industries have been added to the list of services allowed to operate; one of these being the Motor Industry.
Lightstone, the provider of accurate automotive data analysis has used its MyEcho platform to conduct a survey understanding the impact the Lockdown has had on the motoring sector, as well as the sentiment regarding recovery and activity levels since dealerships were allowed to open their garage doors.
The survey results included the feedback of 635 respondents across the motoring industry including OEM’s, Dealerships and MBRs. “The results have been insightful and, in some instances, surprising,” says Mark Groch from Lightstone. “Even though we face an uncertain future, the industry at large is optimistic that economic activity will increase in the next six months, however 40% of respondents are of the opinion that it will take more than a year for the industry to return to a ‘pre-covid’ situation.”
Current and expected market activities according to survey results - The MyEcho survey also compiled positive and negative impact views on future recovery of the industry. On the positive side respondents are of the opinion that the cut in interest rates and lower fuel prices will assist the motor industry during this challenging time. An overwhelming 86% of respondents specified that ‘reduced consumer cash flow’ as a result from the pandemic is one of the most negative factors to impact the industry. Additionally, 72% are concerned about paying employee salaries and 52% are anxious regarding availability of stock (vehicle trading) in the upcoming weeks and months.
Qualitative feedback was requested during the survey in order to gain an understanding of underlying reasons, insights, and motivations with some of the following recorded experiences:
‘People will be over indebted; Vehicles will become a luxury;
"People may resume their lives cautiously, vehicles will still be considered a luxury not necessarily a necessity"
"If we do come out of winter in better shape (virus wise), the lack of income and raised debt levels will have a severe impact on disposable income. “
“It will take time for people to recover financially. I’ve seen clients raising money on existing vehicle finance i.e. refinance vehicles to get cash."
“One of the encouraging findings in the survey is how one third of respondents are looking to online or digital mechanisms to try and mitigate the impact in the first several weeks of lockdown,” Says Groch. “The motor industry is traditionally very paper-based, however the industry was forced to look at creative ways to embrace online purchasing.” All over the world industries have been forced to look at alternative measures to ensure business continuity, and according to Groch some of the good that will come from this pandemic will potentially be that industries like the motor industry will become more digitally fluent and changing the way we buy and sell cars in the future.
*The MyEcho platform offers clients several options; one of these being at no charge. Clients have the option of choosing an existing template or compiling a customised version in three easy steps. Survey results are available immediately and clients are able to track the performance of a survey and its results through the MyEcho dashboard.
Recovery will take more than a year, say industry players- Our April MyEcho survey this year found an optimistic industry that anticipated economic activity would increase in the six months to follow – although 40% of respondents believed it would take more than a year for the industry to return to a ‘pre-covid’ levels of activity.
In a follow up survey conducted in August 2020, results revealed that the level of activity in the market would only reach 42% by July, however in June, the market activity performance sat at a more optimistic 53%”.
The Auto Confidence Indicator- ‘The automotive industry will take more than a year to recover from the negative impact of Covid-19 and the lockdown’. That’s what more than 2 600 respondents across the motor industry said who participated in the Lightstone Confidence Indicator in September
Lightstone recognises 2020 top Motor Body Repairers in South Africa- Over the last three years Lightstone has hosted the EchoMBR (Motor Body Repairers) Ranking Awards, highlighting the top Motor Body Repairers (MBR) in South Africa.
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