2020 has been a wild and unpredictable year so far, and it seems that trend will continue into the coming months, especially where the automotive market is concerned. We certainly have a lot of factors to consider when trying to forecast but for the most part they all center around one thing: COVID. What the outlook is seems to depend on who you ask. Survey data from car dealerships revealed mixed responses. Some reported increased demand as some people became wary of public transit during the pandemic. Others are concerned about a second wave, lack of consumer confidence, and unemployment rates.
And of course, if the demand is there, some worry that the inventory won’t be. Automotive production nearly came to a complete halt in the spring as many converted their resources to produce much needed items for the pandemic. GM was making ventilators, but has now converted back to auto production. As more and more manufacturers come back online and ramp up production, most feel that the automotive recovery has been going pretty well, although it certainly hasn’t made a complete recovery. As we look toward 2021, we can only hope this trend will continue.