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Tracking the 'New Normal' in Automotive

Tracking the 'New Normal' in Automotive

July 23, 2020

July edition: Recovery doubts linger despite sales rebound

The post-crisis landscape for the automotive industry has been constantly evolving since our initial publication on the 'new normal' in early May. In this update, we track the course of economic recovery and government policy across the United States, Europe and China, as well key developments within the industry. Furthermore, in parsing out the news from the noise, we identify several emerging trends and core themes of development, which include some of the highlights listed below:

  • China registers a complete rebound of light vehicle sales due to early containment, while Europe and the United States experience milder recoveries
  • Recent epidemiological developments, especially in the United States, cast uncertainty over future recovery prospects
  • The United States and China continue on an apparent path towards protectionism, evidenced by an escalating trade war
  • The debate between progressive and conservative policymakers in Europe continues, as France and Germany boost EV incentives
  • OEMs institute broad cost saving programs in response to significant cash drain
  • Financial advantages allow tech companies to participate more actively in the AV space
  • As expectations for Level 4/5 robo-taxis wane, the crisis highlights the potential for logistics in commercializing AVs
  • The pre-crisis trend of EV platform consolidation accelerates due to new capital constraints
  • Health concerns over shared mobility options draw in first time buyers of personal vehicles

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