Assessing the Financial Impact of Corona Virus on the UK Automotive Industry

This study assesses the financial impact of corona virus on the automotive industry in the UK and explores the challenges faced by the industry. It also provides recommendations to overcome these challenges.

Assessing the Financial Impact of Corona Virus on the UK Automotive Industry

Contents
Chapter 1: INTRODUCTION..........................................................................................................3
Research Overview......................................................................................................................3
Research Aim...............................................................................................................................4
Research Objectives.....................................................................................................................4
Research Questions......................................................................................................................4
Research Rationale.......................................................................................................................5
Research Hypothesis and Reverse Hypothesis............................................................................7
Description of Case Study............................................................................................................8
Identification of a specific research able topic area.....................................................................8
Importance of the problem...........................................................................................................8
Chapter 2: Literature Review...........................................................................................................9
To analyze the financial impact of corona virus on automotive industry in UK.........................9
To recognize the issues faced by automotive industry due to COVID 19 pandemic ...............11
To determine possible solution to overcome from challenges faced by automotive industries.13
Chapter 3: Research Methods and Methodology...........................................................................15
Various types of research methods and their merits and demerits.............................................17
Chapter 4: Data Presentation and Analysis....................................................................................21
Chapter 5: Conclusion and Recommendations..............................................................................28
Conclusion..................................................................................................................................28
Recommendations......................................................................................................................29
REFERENCES..............................................................................................................................31
Appendix........................................................................................................................................33

Chapter 1: INTRODUCTION
Research Overview
The automotive industry is one of the most important sectors for the country as it
contributes to its overall economic development. But the recent outbreak of the corona virus has
impacted the automotive industry of the country in an adverse manner. This is because all
organizations across various industries had to close their factories and dealerships from the mid
of March with only some of them reopening in the month of May (Abodunrin and et.al, 2020).
The automotive industry is one of the industries that have been affected the most as a result of
the pandemic. The pandemic has impacted the automotive industry of the United Kingdom to a
great extent. There has been an impact on the overall supply chain of the companies as they
export as well as import many parts for their products. Also, due to the lockdown the
manufacturing processes of the automotive has stopped. It can be said that the coronavirus has
long-term impacts for different industries, including the automotive industry of the United
Kingdom. Already the automotive sector in the United Kingdom was being disrupted by various
factors such as new technology such as electrification, artificial intelligence, connectivity and
automation and with the outbreak of the coronavirus, the number as well as levels of challenges
have only increased (Abd Rabou, 2020). This has impacted the overall profitability of the firms
due to which the prices of the products have increased. Organizations operating within the
automotive industry of the United Kingdom have different stakeholders, which means that
companies have to make sure that their needs are satisfied. There was a significant decrease in
the production of vehicles in the month of March. And in order to get the process of vehicle
product to normal would require a considerable amount of time. All the organizations operating
within the industry will have to follow all the safety measures when they resume their business
processes. The automotive industry of the United Kingdom has hit the lowest level since the
financial crisis after the one in the year 1984. The report is based on assessing the financial
impact of corona virus on the automotive industry of United Kingdom. It also identifies issues
faced by the industry as a result of the pandemic as well as a solution to overcome these
challenges.

Research Aim
“To determine the major financial impact of COVID 19 on the automotive industry of
UK.”
Research Objectives
 To analyze the financial impact of COVID 19 on the automotive industry of UK.
 To understand challenges experienced by automotive industry during
COVID-19 pandemic.
 To identify various effective strategies that can be used by automobile industry in order
to overcome challenges of COVID 19.
Research Questions
The recent outbreak of the coronavirus has had a severe impact on the different industries
across the world, automotive industry being one of them. The industry has been dealing with
massive financial challenges and the situation is not expected to go back to normal anytime soon
(Babuna and et.al., 2020). There has been an impacted on the sale of automobiles as a lot of
people have lost their jobs during the pandemic and thus, cannot afford to purchase new vehicles
as of now. This report will explore the financial impact of corona virus on the automobile
industry of the United Kingdom. This will help the researcher in producing valuable conclusions
as well as the readers will also be able to develop a better understanding about the financial
impact of coronavirus on the automotive industry of the UK (de Assunção and et.al., 2020). I am
curious about understanding the type as well as level of financial impact that the pandemic has
had on the automobile sector and how is the industry reacting to the same. The research
questions for the respective dissertation are as follows-
 What are the financial impact of COVID 19 on the automotive industry of UK.
 What are challenges experienced by automotive industry during
COVID-19 pandemic.
 What are various effective strategies that can be used by automobile industry in order to
overcome challenges of COVID 19.

Research Rationale
Industry Rationale
The automotive industry in the United Kingdom is one of the most important parts for it
because it contributes significantly to the overall economy. The industry covers organizations
that are involved in manufacturing, development, marketing as well as selling of vehicles. The
main rationale of the researcher behind choosing this topic is to identify the main impact of
corona virus on the automotive industry of the United Kingdom (Kalantzakos, 2020). Apart from
this, the researcher also wants to identify the issues that are being faced by the automotive
industry as a result of the pandemic. Lastly, another rationale of the respective report is to
identify possible solutions that will help in overcoming the various challenges faced by the
industry. The rationale behind selecting the automobile industry to understand the financial
impact is to produce useful information about the situation. This will be beneficial for both, the
researcher as well as the readers. The coronavirus has created a lot of challenges for the industry
as the overall sales have decreased. After the upliftment of, the lockdown, the industry is
gradually recovering from the impact (Lal, 2020). Various automotive companies are innovating
their products in order to attract a number of potential customers so that they make a purchase.
But with the scarcity of jobs, the purchasing power of the people has declined. The automotive
industry of the country is the biggest exporter of goods and employs a large number of people.
The outbreak of the coronavirus saw various factories as well as dealerships closing. Due to this,
there was a huge impact on the overall financial performance as well as positions of the
companies in the market. those organizations, that were still operating at a small level, had to
face huge losses whereas large automotive companies did not face major financial impacts. Also,
small business organizations had to shut their business activities down as the profits earned by
them were very low.

The automotive industry of the United Kingdom continues to suffer from trouble
throughout the pandemic as well as the uncertainty caused by the Brexit. The above statistical
graph explains that the short-term car purchase intent has decreased to almost 40% in the United
Kingdom because of the pandemic. There was a decline of almost 39% in the rate of car
purchase intent among customers in the country after the upliftment of the lockdown (Moving
forward: How COVID-19 will affect mobility in the United Kingdom, 2020). Also, it can be
concluded from the graph that a survey that was conducted among the customers in the United
Kingdom revealed that 27% of them stated that they plan less on their next purchase of a car.
Also, people who belong to the white-collar jobs, will have a decrease in the need for private
vehicles because of the remote-work option (Liu and et.al., 2020). Apart from this, people who
work in hospitality industry might have an increased need for owning a private vehicle. This
need will increase as most of them will avoid travelling by public transportation. Although their
purchasing power will still remain less by significant levels. Due to all this, the dealers within the
automotive industry are facing a relatively low level of revenue.
Personal Rationale
As discussed, the automotive industry has been largely impacted by the outbreak of the
coronavirus. The rationale why the researcher has focused on this topic is because why are
automobile companies operating within the industry facing a decline in their overall sales of cars.

Poor economic conditions are one of the causes for the same and the problem with this is that
since the economy of the country has been impacted financially, the companies are not able to
generate sales. This is also because a lot of people have a reduced purchasing power as either
they do not have jobs or their wages are very less (Malm, 2020). There are many organizations
that are firing their employees as they have not generated any profits and are finding it difficult
to pay them their salaries. In order to bring back their business to normal, it is important for the
automobile companies to adopt certain measures. This will help them in conducting their
business operations effectively, both within the United Kingdom as well as any other regions of
their operation. The automobile factories have gradually resumed their operations and the
companies are now trying to make sure that they take into account the safety of their workforce
as well as at the same time innovate the products so as to attract a greater number of customers.
Different industries within a country make up its economy and contribute towards
making it strong. The automobile industry is one of the largest employers of the country that
significantly contributes towards the same. There are different factors that can have an impact
over the operations of the company (Markard and Rosenbloom, 2020). But the outbreak of the
coronavirus has been one of the major factors affecting the same. Small businesses are struggling
for growth and expansion whereas many of them have already put a stop over their operations. It
can be said that the pandemic has had an adverse impact over the financial status of the industry.
Therefore, this idea has gained interest of the researcher and therefore, this study is being
undertaken.
Research Hypothesis and Reverse Hypothesis
The pre-investigation assumption of this report is that the recent outbreak of corona virus
has impacted the various industries across the world in a negative manner. It is predicted that the
automotive industry of the United Kingdom is one among the most affected. The expected
outcome of this research is to enhance the overall understanding of the impact of corona virus on
the industry as well as the issues that it has created. The research also expects to provide useful
solutions in which these issues can be addressed in an effective manner (Marta and et.al., 2020).
It has been predicted that the study will help the researcher in understanding the financial impact
of the coronavirus on the automotive industry of the United Kingdom. The researcher’s expected
outcome is to gain an understanding of the topic so as to produce some valuable results. The

researcher wants to test the level of impact that the pandemic has had over the sales as well as
production of the cars in the market. The research hypothesis is testable and will allow the
researcher to gain an understanding of the research topic in an effective manner. also, the
conclusion of the study will be appropriate and relevant.
Description of Case Study
The outbreak of corona virus has impacted the overall economy around the world in a
negative way. The demands as well as supply of products has been affected as the production of
vehicles has gone gown drastically overtime. This study is mainly attempted in order to identify
the issues that the industry is facing due to this as well as potential solutions that can help in
addressing the same. This is also because as a worldwide lockdown as well as social distancing,
people have not been able to visit the showrooms and make purchases.
Identification of a specific researchable topic area
The primary reason behind selecting this particular topic is that the outbreak of the
corona virus has not only impacted the retail industry and hospitality industry, but also the
automotive industry in a negative way (Pashaei and Rezaei, 2020). Also, not many researches or
studies have been conducted to analyze the financial impact that the corona virus has had on the
automotive industry. Also, since the impact of corona virus on different industries is one of the
most discussed topics today, it is important to research about this topic. Therefore, the research
will help in building an understanding of the same in an effective manner.
Importance of the problem
The outbreak of corona virus has resulted into a considerable amount of decline in the
number of vehicle production within the automotive industry. The research will help in
identifying the impact of corona virus on the automotive industry and solution for the same
(Anari and et. al., 2020). There is a need to research about the problem in order to obtain relevant
data as well as information about the same. This will further help in making informed decisions
and implementing the right strategies so that they can be implemented if a similar situation arises
in the future.
Chapter 2: Literature Review
To analyze the financial impact of COVID 19 on the automotive industry of UK.

The outbreak of corona virus has caused a widespread concern not only for the
consumers, but the manufacturer within the automotive industry as well. This has also resulted
into an impact on the overall supply chain of organizations that operate within the automotive
industry. The production of vehicles has shut down due to which the overall financial condition
has also been impacted (Barabari and Moharamzadeh, 2020). The pandemic has posed a lot of
financial challenges for the industry and it is being anticipated that it would require a
considerable amount of time for the companies to get back to their normal functioning. March is
among the busiest months for companies in a year. The automotive industry within the United
Kingdom has been one of the most affected industries with the number of new car registrations
falling by 44% (How coronavirus is impacting sales & marketing in the automotive industry,
2020). This is said to a much steeper decline as compared to the one during the recession of
2008.
Apart from this, a lot of small businesses as well as dealerships have closed down their
businesses due to the pandemic. It can be said that financially, the automotive industry has been
suffering from the consequences a lot (Ranjan, Patra and Gorai, 2020). The results of various
studies that have been conducted show that many people are of the viewpoint that they would not
spend a lot of amount on their next purchase of a car. As far as white-collar workers are
concerned, they will have an option of working from remote areas and thus, their need to own a
private vehicle will also reduce. Companies that initially had plans of growing and expanding
their business operations to new countries have put a hold on the same.
Due to the lockdown and the social distancing, the customers were not able to visit the
car showrooms. This has resulted the customers in not being willing to spend a lot on buying a
car. This is because there is a financial instability within the market. As the consumer demand
for cars is gradually diminishing, it has been observed that a lot of brands have suspended or put
a hold on their production process (Khan, Ali and Aftab, 2020). Major companies to do so
included Jaguar Land Rover, Nissan, Honda etc. A recent study that was conducted, showed that
automobile companies within the United Kingdom were either concerned or very concerned
regarding the impact on operations of their suppliers as well as their respective business on the
whole. Besides these, another major area of concern for the companies is the low demand among
customers and the availability of the raw materials.

Impact of the pandemic
It can be said that corona virus has impacted the operations of the automotive industry in
a negative manner. But, in order to resume their services to normal and attract customers, there
are some car dealers that are offering services remotely (Muzakki, 2020). They are offering
services like home test drives, virtual tours, contactless buying etc. All these measures are being
taken in order to ensure safety as well as security of both, the employees of the company as well
as the customers. Taking into account the financial instability within the country, automobile
companies like Ford are have introduced a campaign named “Peace of Mind”, wherein the
customers can buy the car and make payments up to a time limit of 6 months (Khan, M. F., Ali,
S. and Aftab, N., 2020). This initiative is basically to attract a greater number of customers and
improve overall sales. Although the companies have put a hold on or stopped their production
process, they are still advertising about the products and services in order to keep the customers
engaged with the brand (Ranjan, Patra and Gorai, 2020). Organizations within the industry have
panned the process and instead of investing huge amounts of money in advertising during the
time of financial crisis, they are promoting themselves and their products through various social
media platforms like Facebook, Instagram and Twitter.
The automotive industry within the United Kingdom has reported about a 13% increase
in its overall advertising through various mediums (Norouzi and et. al., 2020). Companies like
Ford are developing and producing ads that are mor inclined towards their response to the corona
virus. The corona virus has also changed the buying behavior of the customers during buying a
car. The United Kingdom has also reported n overall decline in the overall sales by 36% as
compared to the same period during last year. Analysts within the United Kingdom have
estimated the overall income of the country to fall approximately by 26% (Weekly Update:
COVID-19 Impact On Global Automotive Industry, 2020). Although the rate of sale for both
used as well as new cars is constantly declining, the rate for new cars was recorded to be even
steeper, which is not a good sign for the automotive industry. Due to financial instability many
automobile companies have let go of their existing employees in order to save money. Therefore,
it can be said that the outbreak of corona virus has resulted in a very difficult time for different
industries, especially the automotive industry with the United Kingdom.

To understand challenges experienced by automotive industry during
COVID-19 pandemic.
As per the article of PWC (2020), it has been determined that there are various issues and
problems that is faced by company dealing in automotive industry due to COVID 19 pandemic
(Barua, S., 2020). It is essential for organisation to determine and analyse the different factors or
elements which are issue for company as well as lead to have negative impact on automotive
industry. COVID 19 leads to have major negative impact on business practices as well as affect
the purchasing capabilities of customers to buy product (COVID-19 and the automotive industry,
2020). This have impact on various sectors all around the world as well as impact over economic
growth and development. Due to COVID 19 capabilities and potential of company in automotive
industry is affected and organisation is not able to successfully and effectively perform business
practices. There are various large and multinational companies dealing in automotive industry
and their functioning has been affected by pandemic of COVID 19. Different issues and
challenges that is faced by automotive industry is mention below in detail –
 Lack of financial resources – There is lack of financial resources available to business for
conducting different activities for automotive sector. Organisation in respective industry
have to purchase different types of raw material and other resources for successfully
developing high quality products (Sheykhi, 2020). As a result, they are shutting their
businesses down and the United Kingdom is among those countries that have been under
the lockdown for several months. This is because the number of cases of coronavirus was
at the peak during the initial months. However, there has been a decline in the number of
cases, but various industries are still struggling with coming back to normal.
 Potential global recession – Due to COVID 19 there is global recession and this is issues
which is affecting organisation in automotive industry. Due to global recession
unemployment rates increasing as it will lead to have direct impact over the potential of
customers to purchase products. Global recession has reduces the job opportunities and
growth of business. Automotive sector is majorly affected by global recession as well as
increase in unemployment rate as it will directly or indirectly affect the functioning of
company is effective manner. Due to this economic capacities and potential of
automobile companies is also affected.

 Decrease in demand – Another issue that is faced by automotive industry due to COVID
19 is less demand of automotive products in market area. This sector includes luxury
products and during the time of COVID 19 most of the people are focusing on meeting
with the necessary needs and want for their survival. COVID 19 have affected the market
area of automotive sector and it has direct impact in sales and profitability of companies
in this industry (Singh, Parmar and et.al., 2020). Decrease in demand of automotive
products and less sales in major issues for that is faced by business in automotive sector.
Due to this sales and productivity of companies in decreasing and it led to heavy loses to
companies. The lockdown has restricted people from travelling freely and sur to this, the
overall demand for new automotive has decreased to a great extent. It is being estimated
that the aftermarket revenues of the automotive industry are still likely to be low in the
coming year as the industry will take a significant amount of time to recover from the
same.
 Reduction in productivity – Automotive industry is facing major issues of productivity.
Due to COVID 19 pandemic manufacturing and production process of automotive sector
has been stop for certain time period (Barua, 2020). Because of lockdown or direction of
government production practices or manufacturing activities was not conducted and it
lead to major negative impact on business overall productivity as well as raw material of
automotive sector. Increase in these issues have influence over employees and reduction
of staff member. Due to COVID 19 automotive industry has a smaller number of workers
for conducting business process as well as manufacturing of products. This led to directly
impact over the production process of automotive company and this sector have to face
issues of less or lower productivity (Su and et.al., 2020). There has been a loss of jobs
and due to this organizations are currently operating with a limited workforce. Due to
this, the overall productivity of the organizations has also decreased. Also, the production
has stopped and thus, the level of sales has also decreased.
 Difficulties with funding – Automotive industry is facing issue in collecting funds and
investment for conducting business task. COVID 19 issues has affecting capabilities of
automotive industry for assembling funds in order to successfully conduct business task.

Due to difficulties with funding automotive industry has less financial resources to
perform business activities and attain desired goals.
 Operation and supply chain issues – Due to COVID 19 automotive sector is not able to
carry out business operation as well as manage supply chain of company. this is affecting
the capability of automotive company to provide manufactured products to potential
customers. It is very difficult for automotive sector to supply developed products to
customers because of strict guideline of government. Due to this business of automotive
sector is failing to successfully operate organisational practices as well as effectively
management supply chain activities of business.
To identify various effective strategies that can be used by automobile industry in order to
overcome challenges of COVID 19.
According to Accenture (2020), it has been determined that automotive company needs
to determine and analyse the most effective solution in order to overcome the challenges that is
faced by automotive industries. It is important for company to analyse and evaluate different
factors and elements that will lead to impact over business. Analysis of major issues will help
company to successfully resolve the issues as well as managing business practices in more
effective and efficient manner. COVID 19 pandemic is major issues and it will lead to have
various negative impact on business as well as its activities (Vogel, 2020). It is very difficult for
automotive sector to correctly conduct activities in previous manner as this issue changes
business environment. It is essential for company to evaluate the solutions to the different
challenges faced by company as well as conduct business activities in required manner (COVID-
19: Mobilizing the automotive industry now, 2020). There are different solutions which will
assist company of automotive industry to overcome the problems and challenges as well as
increase performance and productivity in market area.
 Digital media marketing – This is very effective and useful way of marketing which can
be consider by automotive industry for providing information about the products to
customers. There are different social media networks that have large number of users.
Because of lock down financial implication has been majorly affected. In order to
successfully management and maintain financial implications in most significant and
effective manner digital marketing approach will be effective. This will be effective

marketing strategy that will help company in successfully conducting business practices
as well as carry out task in required way. Automotive companies will be able to conduct
marketing activities as well as promote its products in more creative and innovative
manner. This will be less costly to company as well as able to reach large market area.
Digital media marketing in more safe and secure at the time of COVID 19 pandemic for
company as well as customers. Digital media marketing has gained popularity during the
lockdown as the rate of use of internet has increased. Therefore, this is a solution that the
automotive organizations operating within the industry are now adopting. This has helped
them in attracting a significant number of new customers and at the same time, retain the
existing ones as well. It can be said that this will be one of the most successful strategies
adopted by the companies.
 Innovative technology – It is essential for automotive company to consider new and
innovative technology while performing business activities. innovative technology will
be significant for effective and efficient functioning of business as well as timely
completion of task. Through this strategy automation company is able to deal with the
issues that occur due to lock down. Innovative technology will help automation in correct
financial implication as well as enhancing overall performance of business (Vogel, 2020).
There are different new and innovative technologies which will be beneficial at the time
of COVID 19 issues. Information system will help in keeping track over business process
and supply gain system. This will reduce direct human involvement and keep safe form
the issue of corona. By implementing innovative technology as well as features to the
automobiles manufactured, companies can attract customers. This is because customers
are always looking for something new and innovative in the market. the companies
should ensure that the technology that is implemented is not very costly as the
purchasi9ng power of the customers is currently low and using anything expensive will
make it difficult for them to afford the automobiles from the companies.
 Close contact with suppliers – It is crucial that company is directly contact with
suppliers and reduce third party involvement. This solution is significant for saving the
cost of third party as well as direct communication with suppliers will help in fast
delivery of products or raw material (Ayittey and et.al., 2020). Close contact with
suppliers is effective solution for automotive company that is not able to carry out

business practices due to lack of resources. Lock down has affecting overall functioning
of business and due to this financial implication of organization is influenced. By
developing close contact with suppliers automotive company will be able to deal with
issues in significant manner. This solution is useful for overcoming different issues and
problems of automotive company which is affecting the smooth performance of business
process. Timely delivery of raw material will assist in enhancing performance of
company as well as improving business practices in effective manner (Vogel, 2020).
Although the pandemic has impacted the overall automotive industry of the United
Kingdom in an adverse manner, it is important for the automotive organizations to
maintain a close contact with the suppliers as this will help them in maintain
communication with them. Also, suppliers have been offering products or raw materials
at discounted rates after the lockdown as the pandemic has also impacted their business
operations. Therefore, companies can purchase materials from the suppliers so that the
companies also get materials at discounted rates and the suppliers are also able to conduct
their business activities in an effective manner.
 Develop strong relationship with customers – Customers are very important part of
business and strong relationship with customers will be very helpful for success of
automotive sector. There are many companies in this sector face issue of lower sales and
profits along with the decrease in demand of products. Due to lock down automotive
company has lose it relationship with customers and it impact over customer base. By
developing strong relationship with potential customer organization will be able to deal
with financial implication in most effective manner. By developing effective relationship
with customers company will be able to identify and determine the need of customers and
this will help in improving sales. Strong relationship and effective communication with
customer are significant for determining requirements of customers as well as enhancing
sales and profitability (Lea, 2020).
Chapter 3: Research Methods and Methodology
Research methods can be defined as the strategies as well as processes that are used in the
data collection process in order to analyze it and obtain new information. Research methods are
important because they help the researcher in getting a solution to the research problem. By

studying research methodology, the researcher is able to gain an understanding of the methods
that are relevant to the problem. There are different types of research methods that are used in
order to collect data for a research. On the other hand, research design can be referred to the
overall strategy that is chosen in order to integrate the different components of the same. In
simple words, research design can be referred to as a blueprint that is used to conduct a research.
Research designs are important as they ensure that all the activities of the research are conducted
in an effective manner. As a result, the research is efficient and yields maximum information
with minimum input of effort, money as well as time. It can be said that research designs can
impact the reliability of results obtained in a significant manner (Sokol and Pataccini, 2020).
There are two main types of research, primary as well as secondary, the same are described
below along with their merits as well as demerits.
Primary Research
It can be defined as a type of research that is used to collect data directly, rather than
depending on data which was collected for a previously conducted research. Primary research is
among the most commonly as well as widely used researches around the world. The various
merits as well as demerits of primary research are explained below –
Merits – One of the greatest advantages of primary research is that it allows the
researcher to collect first-hand data that is reliable. Also, the issues that are targeted by the
researcher can be addressed easily with the help of primary research. The data which has been
collected through different data collection methods can be analyzed as well as interpreted in an
easy way. The researcher can tailor the data that is collected as per the needs of the researchers.
Demerits – Besides having a lot of advantages, there are also certain merits of primary
research. For example, it is very time consuming and if the respondents are not supportive, the
overall results of the research can get affected. The process of data collection involves a lot of
money as the researcher has to be involved throughout and design everything.
Secondary Research
Secondary research can be defined as a type of research that involves using data that is
already existing. The existing data is summarized and analyzed in order to increase the overall
effectiveness of the research. Respective research is a secondary research and the information is

gathered through different sources. The merits as well as demerits of secondary research are
explained below –
Merits – Secondary research is more convenient for the researchers because it is cheaper
in comparison to primary research. The researcher is able to gather a lot of information and tailor
its as per the need of the research. As the technology has advanced, the is also a lot of data that is
available online. The cost involved in the completion of a secondary research is less in
comparison to primary research because the information is available in different forms.
Demerits – A major demerit of secondary research is that the researcher can face
difficulties with collecting data that is specific to their needs. Also, when the researcher has a
specific question in mind, it can be difficult to obtain data.
Various types of research methods and their merits and demerits
Observation
This is a primary research method, wherein there is no direct interaction between the
consumer as well as the researcher. Observation research is a qualitative studies technique where
researchers look at contributors' ongoing behavior in a herbal scenario.
Merits and Demerits
Observations may be effortlessly replicated through other researchers by using the same
observation time table. This means it is straightforward to test for reliability. The records
received from established observations is less difficult and faster to research as it is quantitative
(i.e. Numerical) - making this a much less time-consuming technique as compared to naturalistic
observations.
Interview
An interview is normally a qualitative research method which involves asking open-
ended inquiries to converse with respondents and acquire elicit records about a topic. There are
specific styles of interviews, established and unstructured interviews. Structured interviews
recognition at the accuracy of various responses because of which extremely organized facts may
be gathered (Anari and et. al., 2020). Different respondents have special form of answers to the
equal shape of questions – solutions acquired can be together analyzed.

Merits and Demerits – The main merits of interviews include that they are more
accurate with the information that is collected. Also, it is a flexible method of data collection and
personal information can be collected easily. It is important to take into consideration the interest
as well as skills of the respondents. On the other hand, the demerits include that it is a slightly
expensive method and there is a requirement of proper setting. Also, conducting an interview can
be time consuming and sometimes expensive as well.
Questionnaire
A questionnaire is a research tool that includes a fixed of questions or other styles of
prompts that objectives to accumulate facts from a respondent. The statistics gathered from a
data collection questionnaire can be each qualitative as well as quantitative in nature.
Merits and Demerits
One of the major merits of questionnaire is that they are practical and inexpensive. Also,
they can be analyzed easily and produce valuable results about the respondents. They lack detail.
Because the responses are fixed, there is much less scope for respondents to deliver solutions
which mirror their authentic feelings on a topic (Ayittey and et.al., 2020). Respondents may not
be one hundred% sincere with their answers.
Ethical Considerations
During the research, it will be made sure that the participants are not subjected to any
kind of harm and are treated with dignity. Apart from this, full consent will be obtained from
them before collection of data. And the data which is collected, will be kept confidential
whatsoever. If any of the participants is not willing to share some sort of information, they will
be allowed to do so (Khan, Ali and Aftab, 2020).
Research Limitations
Some of the limitations of the research are time constraints along with limited time
available for data collection. Apart from this, there were also certain family as well as work
commitments. Due to this, the completion of the research got affected to some level (Barabari
and Moharamzadeh, 2020). Also, there were some respondents who were not comfortable with
answering certain questions.

Questionnaire
Questionnaire
Name -
Age -
Contact number -
1. Do you have understanding about the different issues of COVID 19 on automotive industry.
 Yes
 No
2. According to you what are the major impact of corona virus that is faced by companies in
order to conduct business operations smoothly or successfully.
 Impact on supply chain
 Impact over sales
 Impact on automotive product demand
 All of the above
3. Do you think that COVID 19 lead to have financial impact over UK automotive industry
 Yes
 No
4. As per your views what are the crucial financial impact of corona virus on automotive
industry.
 Decrease in profitability

 Less sales
 Reduce production
 All of the above
5. What are the various issues that is faced by automotive industry in the pandemic of corona
virus
 Lack of financial resources
 Potential global recession
 Decrease in demand 8
 Difficulties with funding
6. Do you think it is essential for automotive industry to overcome with issues of corona virus
for effective and efficient functioning of business.
 Yes
 No
7. According to your point of view what are the effective solutions that could be used by
automotive industry to deal with COVID 19 challenges
 Digital media marketing
 Innovative technology
 Direct contact with suppliers
 Enhance relationship with customers
 All of the above

Chapter 4: Data Presentation and Analysis
Theme 1 - Understanding about the different issues of COVID 19 on automotive industry
1. Do you have understanding about the different issues of
COVID 19 on automotive industry.
Frequency
Yes 26
No 4
Interpretation – As per the above collected information it has been analysed that there are
different issues and challenges that is faced by automotive industry because of COVID 19.
Through this it has been analysed that most of the respondents are well aware about the issues of
COVID 19 on automotive industry. It has been analysed that out of 30 respondents 26 has
answered with yes that they are aware about different issues where as other 4 respondents has
answered negatively as they do not have understand about COVID 19 issues on automotive
sector.
Theme 2 - The major impact of corona virus
2. According to you what are the major impact of corona virus
that is faced by companies in order to conduct business
operations smoothly or successfully.
Frequency
26
4
Yes
No

Impact on supply chain 5
Impact over sales 5
Impact on automotive product demand 5
All of the above 15
Interpretation – Through the above shown graph it has been analysed that automotive industry
have to deal with different impact which will lead over business operations. It has been analysed
that companies deal in automotive sector will be influenced by corona issues. Out of 30
respondents 5, 5 and 5 respondents consider that corona virus will have major impact over
supply chain of company, reduce sales of business respectively and impact over demand of
automotive in market area. Where as majority of respondents consider that all of the above
mention are crucial impact that would lead to significantly influence over successful and
smoothly functioning of business in automotive sector.
Theme 3 - COVID 19 lead to have financial impact
3. Do you think that COVID 19 lead to have financial impact
over UK automotive industry
Frequency
5
5
5
15
Impact on supply chain
Impact over sales
Impact on automotive
product demand
All of the above

Yes 25
No 5
Interpretation - According to above report it has been analysed that majority of respondents
consider that COVID 19 will lead to have major financial impact over automotive industry of
UK. Through collected data it has been analysed that out of 30 respondents 25 has answered with
yes where as other 5 has answered with no.
Theme 4 - Crucial financial impact of corona virus on automotive industry
4. As per your views what are the crucial financial impact of
corona virus on automotive industry.
Frequency
Decrease in profitability 5
Less sales 8
Reduce production 5
All of the above 12
25
5
Yes
No

Interpretation – Through the above collected information and data it has been identified that
there are different financial issues or impact that is faced by automotive industry. As per 5, 8 and
5 respondents it has been analysed that decrease in profitability, less sales and reduce production
are the crucial financial impact of corona virus on automotive industry. Where as other 12
respondents consider that all of the above mention financial impact is crucial and it will lead to
directly affect automotive industry.
Theme 5 - Various issues that is faced by automotive industry in the pandemic of corona virus
5. What are the various issues that is faced by automotive
industry in the pandemic of corona virus
Frequency
Lack of financial resources 6
Potential global recession 6
Decrease in demand 8
Difficulties with funding 10

Interpretation – Through the above collected information it has been there are various issues
faced by automotive industry in pandemic of corona virus. As per collected data out of 30
respondents 6 consider that lack of financial resources is the issues. Other 6 and 8 respondents
consider that potential global recession and decrease in demand is the major issues. Where as
other 10 respondents out of 30 feel that difficulties in funding is the major issue.
Theme 6 - Essential for automotive industry to overcome with issues of corona virus
6. Do you think it is essential for automotive industry to
overcome with issues of corona virus for effective and
efficient functioning of business.
Frequency
Yes 25
No 5
6
6
8
10
Lack of financial resources
Potential global recession
Decrease in demand
Difficulties with funding

Interpretation – Through the above shown graph it has been analysed that it is essential
for automotive industry to successfully overcome with impact of corona virus in order to
effective and efficiently conducting business functions. It has been analysed that out of 30
respondents 25 has responded in positive manner where as other 5 respondents has answered in
negative manner.
Theme 7 - The effective solutions that could be used by automotive industry to deal with COVID
19 challenges.
7. According to your point of view what are the effective
solutions that could be used by automotive industry to deal with
COVID 19 challenges.
Frequency
Digital media marketing 5
Innovative technology 5
Direct contact with suppliers 4
Enhance relationship with customers 6
All of the above 10
25
5
Yes
No

Interpretation - it is essential for automotive industry to consider correct and accurate
strategies in order to successfully deal with the issues. Through this it has been analysed
that 5, 5, 4 and 6 respondents feel that digital media marketing, innovative technology,
direct contact with suppliers and enhancing relationship with customers respectively.
Where as other 10 respondents feel that all of the above are the crucial strategies that is the
useful strategy which needs to consider by companies dealing in automotive sector.
5
5
4 6
10
Digital media marketing
Innovative technology
Direct contact with suppliers
Enhance relationship with
customers
All of the above

Chapter 5: Conclusion and Recommendations
Conclusion
From the above report it has been concluded that there are different issues and problems
faced by automotive sector due to COVID 19 pandemic. These issues will lead to have affect
over functioning of business as well as sales of products. Organization is facing challenges of
lower sales and profitability. Apart from this there are different solution that is significant for
resolve the problems of automotive sector. In order to ensure that the research is conducted in an
ethical manner, the researcher will provide an option to the respondents wherein they will have a
choice regarding the questions that they want to answer. Also, all the information that will be
used in the research will be obtained from reliable and relevant sources to maintain the quality of
the research. Although, the companies have now resumed their business operations, they have
still warned the customers regarding delays on cars that are per-ordered, especially the ones that
depend on suppliers that provide raw materials from overseas. In some cases, it is still possible to
buy a car from manufacturers who have existing stock by placing an order through the
company’s online website.
The pandemic has also made it difficult for the industry to deal with the declining
demands for vehicles along with struggling to meet the new targets. The figures that depict a
decline in the sales are considered to be the lowest since the year 1946. But since the lockdown
was introduced, the numbers are not completely unexpected . It would take a considerable
amount of time to return back to the original sales numbers. The financial impact of the corona
virus has also put a lot of jobs within the UK automotive industry at risk because there are no
customers to buy the cars that are manufactured by the companies operating within the industry.
Suspending the business operations since the month of March has resulted in a lot of loss for not
only the companies that were operating at a lower level, but also the ones that had a hold within
the market. And it can be certainly said that the industry would require a lot of efforts to return to
previous position of being among the most productive industries within the United Kingdom.
Due to lack of resources company is not able to purchase required set of raw material for
creating products as well as conducting manufacturing practices. Lack of availability of
resources is one of the major issues which is affecting the functioning of organisation as well as
carry out business practices. Due to issues of financial resources automotive companies are not

able to perform business task and activities in required manner. This is directly affecting growth
and profitability of business. There are no investors that are as such available for funding the
small business. The lock down caused the automotive companies to lose their relationship with a
lot of customers. Hence, social media platforms can be effectively used in order to make sure
that the customers are satisfied. Also, in order to attract new customers, various offers and
discounts can be offered to them. It is a known fact that the customers can make or break a
business. Therefore, it is important for the companies to make sure that they maintain an
effective relationship with their customers. This is important because it will help in maintaining
the goodwill of the brand and customers will also know about the latest updates as well as
products of the companies. There are less sources in market for gathering funds and investment
so that function of organisation can be smoothly conducted. This is the issue that is affecting
automotive business and performance in market area. A lack of investors has also posed
challenges to the organizations as there are no funds available for the companies to conduct
various activities such as advertising, promotions and branding.
The industry has constantly suffered throughout the pandemic along with other major
industries that contribute to the growth of the overall economy of the country. Also, uncertainties
caused by the Brexit can be cited as another factor that has impacted the automotive industry of
the country. People who had purchased new cars before the outbreak of the pandemic have
hardly got any time to drive the same. Thus, companies within the automotive industry that offer
after-sales service of the cars have seen an impact over their revenues. This is also because the
vehicles have travelled very less distance. Therefore, there is no need for the service of the cars.
Recommendations
From analyzing the above report, there are certain recommendations that can be made for
the UK automotive industry. The first recommendation is that the organizations operating within
the industry should look at doing business with suppliers who offer raw material at cheaper rates.
This will allow them to conduct their business operations in an effective manner. It has been
observed that due to lock down, the overall sales of the companies have declined. Therefore, in
order to get back to their original sales rate and increase the same, the companies are
recommended to sell their products at low rates. This will help in attracting a greater number of

customers. It is also recommended that they innovate their products so that the customers are
attracted and encouraged towards making a purchase.
It is also recommended that the if the companies are not able to make an increase in their
overall sales, they should make use of the different social media platforms such as Facebook,
Instagram and Twitter. This will help them in reaching out to a greater number of customers as
well as keep the existing ones engaged by regularly posting updates on these platforms. By
offering additional and attractive services to the customers, the automotive companies will be
able to retain their customers for a longer period of time. Therefore, by implementing these
recommendations, organizations in the automotive industry of the United kingdom will be able
to enhance its overall economy.

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Appendix
Questionnaire
Name -
Age -
Contact number -
1. Do you have understanding about the different issues of COVID 19 on automotive industry.

 Yes
 No
2. According to you what are the major impact of corona virus that is faced by companies in
order to conduct business operations smoothly or successfully.
 Impact on supply chain
 Impact over sales
 Impact on automotive product demand
 All of the above
3. Do you think that COVID 19 lead to have financial impact over UK automotive industry
 Yes
 No
4. As per your views what are the crucial financial impact of corona virus on automotive
industry.
 Decrease in profitability
 Less sales
 Reduce production
 All of the above
5. What are the various issues that is faced by automotive industry in the pandemic of corona
virus
 Lack of financial resources
 Potential global recession
 Decrease in demand 8

 Difficulties with funding
6. Do you think it is essential for automotive industry to overcome with issues of corona virus
for effective and efficient functioning of business.
 Yes
 No
7. According to your point of view what are the effective solutions that could be used by
automotive industry to deal with COVID 19 challenges
 Digital media marketing
 Innovative technology
 Direct contact with suppliers
 Enhance relationship with customers
 All of the above