The Impact of the COVID-19 on the Automotive Market

COVID-19’s impact on the automotive supply chain may be substantial. Countries that have been heavily impacted by the outbreak, in particular, China, Japan and South Korea, account for a significant share of global auto manufacturing. China’s Hubei province, the pandemic’s epicenter, is one of the country’s key automotive production centers.Especially many powder metallurgy OEM auto parts supply chain are in China.

The deeper into the supply chain, the greater the impact of the outbreak is likely to be. Automakers with global supply chains are likely to see tier 2 and especially tier 3 suppliers most affected by pandemic-related disruptions. While many major automotive original equipment manufacturers (OEM) have instant, online visibility into top-tier suppliers, the challenge grows at lower levels.

Now China’s epidemic control is effective, and the market resumes production quickly. Will soon be of great help to the recovery of the world Auto market.