The Impact Of COVID-19 On The Upstream And Downstream Of The Automotive Industry Chain

The number of confirmed diagnoses of COVID-19 infection continues to increase, of which South Korea, Italy, Iran, and Japan increased the most. Till March 2, 2020, the number of confirmed diagnoses in South Korea reached 4812, and the number of Italians reached 2084. At the same time, COVID-19 has been reported to various industries. The development of the industry and national economies has multiple degrees of impact, especially on the upstream and downstream of the automotive industry chain.

The impact of the epidemic on the entire automotive industry is profound. In the short term, the effect on the automotive market is relatively significant, and the parts system is disrupted; in the long time, it may affect the layout of the industrial structure. “The specific impact is mainly distributed in the following areas: including reduced car purchase consumption, poor logistics, rising raw material costs, rising corporate production costs, etc., which will be transmitted to the entire automotive enterprise.” Bearings, as essential components, such as spherical roller thrust bearings the epidemic has also had a serious impact on the bearing industry in various countries.

In the long term, the emergence of new crown pneumonia may accelerate the optimization and adjustment of the industrial structure. Among them, the superior enterprises have relatively stable anti-risk capabilities and relatively fast recovery of operations. However, some companies are weak or have been eliminated by the market because of their weak innovation ability. Through this epidemic situation, our companies have also thought about how they will improve their competitiveness and anti-risk capabilities, and how to coordinate and coordinate among industries effectively.

It is believed that with the joint efforts of the whole world, the difficulties are only temporary, and the battle of COVID-19 will surely win.