Environmental Analysis of the Impact of COVID-19 on the Automobile Industry in the UK

This report evaluates the impact of COVID-19 on the UK automobile industry and provides survival and success factors for the industry in consideration to megatrends. It discusses the impact of COVID-19 on new and used car sales, after-sales and services revenue, and the mobility sector. The report also highlights the increasing trend of electronic vehicles as a survival factor for the industry.

Environment analyses
of industry

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Impact of covid pandemic in automobile industry......................................................................3
Development of survival and success factor for the industry in consideration to megatrends....6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Environment analyses is related to those analyses under which the impact of the external
environmental factors on the organisation are evaluate. It is very important for the organisation
to evaluate the environment effectively because it the minor change in the external environment
can lead great loss to the organisation (Kim and Chi, 2019). It is required to conduct environment
analyse for the Land rover. This report states the impact of pandemic on the automobile industry
of United Kingdom and the survival and success factors for the industry. Land Rover is a British
company in the auto-mobile industry which is owned by multinational car producer Jaguar Land
Rover. The company name was created in the year 1978 and serves in various countries.
TASK
Impact of covid pandemic in automobile industry
One of the most important and popular aspect which impact each and every organisation of
the world is the covid pandemic. At the time when this pandemic hit the world’ all the activities
of the business become stop dur to spread of the disease. The government of the respected
countries announce total lockdown in the country under which only the essential services are
allowed to conduct all the business remains to be shut down. The result of this shut down of the
business organisation is that the global economy duffers from the recession and the economies of
all the countries shows negative growth. It is not right to say that it only impact negative because
there are also positive aspects of this pandemic that it improves the life style of public. The covid
pandemic impact the automobile industry of the United states in different aspect and the brief
discussion related to these aspects are given below:
Covid have an impact on the mobility sector of United Kingdom for more than two years
Before the covid hit the world the mobility sector of the united kingdom shows strong
positive growth which attracts the investors from all over the world. In the year 2010 investors
34 billion dollars to the mobility company of the united kingdom by the attraction of their high
growth rate. The industry trend shows that the companies are taking effective decisions because
the number of passengers travels in a car van and other automobile are increased by 0.5%
annually.
When the mobility sector shows strong growth in the market, the automobile industry of
the United Kingdom shows negative growth. The highest peak of the sale of new and used cars

are about 10.8 million dollars in the year 2017. After achieve this peak the automobile sector of
the country decreases by 4% annually. One of the major reasons for the down fall in this industry
is the introduction of Ultra low emission zone in the central London decreases the number of
vehicle to mover in the area.
The automobile sector of the United Kingdom has to faced serious downfall in the month
of march 2019 which is 46% down in the sale of vehicles and 97% in April 2019 which is the
only highest downfall which the industry faces (Straková, 2018). The result of this downfall
impact the employment rate very strongly. Large number of people become unemployed and
many businesses collapse and become futile.
Impact of covid pandemic on new car sales, used car sales and after sales and services
revenue
It is required to understand the concept effectively that the discussion related to new and
used car and after sale revenue can be made separately. The brief discussion related to these
concept are given below:
New and used cars
It is proved by the report of survey agencies that the number of persons in the United
Kingdom which likes to purchase the new car for them is decreasing by 39% in the year 2020.
The main reason behind this downfall is unemployment and reduction of the cash flow due to
covid pandemic. According to this report two third of the people prefer to delay their purchase of
new car for six month and more due to some health and economic issues.
White collar workers are generally saving their purchasing power before and after covid
pandemic because they have remote working options which enables them to use public transport
and other way of their conveyance. The persons related to hospitality and other professions are
likely to prefer their private vehicle if they do not use public transport. But pandemic impact the
purchasing power of these person very badly they prefer to postponed their purchase.
After sales and servicing
One of the most biggest impact of the covid is on the after sales and servicing of the
vehicle. The revenue of the industry decreases by the huge percentage because at the time of
lockdown no private and commercial vehicle are allowed to run so the rate of collisions and
accidents are decreases and the work of servicing become null. The usage of vehicle in the covid

pandemic are decreased by the 80 percent which minimises the revenue of service sector very
hardly.
Impact of social distancing on the mobility sector
The physical distancing which the government of the United Kingdom prescribed to
citizens impacts negatively on the mobility sector of the country. Government order to maintain
minimum strength in the public transport which minimise the revenue of the companies. There
are many companies which develops specialised framework in their organisation which enables
their employees to work form their home (Bailey, 2018) . The result of this framework is that the
number of passengers travels from the public transport to reach at their office place decreased by
large number. This impact the revenue generation very badly.
One of the most important aspect which proved by the surveys that the number of
customers purchasing the cycles are increased by huge rate. After the covid pandemic most of
the people prefer to use cycles for their general domestic work and also to reach at their office.
The main reason for this scenario is the shift of public preference towards the health and physical
distancing. The concept of cycling promoted the health of the people as well as protect them
from the contact of infected person. This scenario is not acceptable for the industry because all
the companies face huge losses.
Long range travel
The revenue from the persons which prefer the long-range travel for their different
business and non-business purposes is very high. There is a serious increase in the percentage of
persons travel long distance before the covid hit the world. According to some studies that there
are 4 percent increase in the number of passengers annually which impacts the business of
vehicle companies very positivity. At the time when covid hit the worlds the number of people
travels long distance decreased by more than 90 percent which impact the industry very badly
and many companies shut down fall their operations which leads to the serious recession in the
industry. The main reason behinds this downfall is the restriction put by the government on the
national and international travels. All the flights and other transportation services are suspended
by the government to protect their citizens from the disease spread in the environment.
Impact of covid pandemic on original equipment manufacturer
In case of original equipment manufacturer, there are large number of workers are
working in the factory. The safety of the workers is the primary duty of the organisation so

company is needed to follow the covid guideline in their organisation. The mangers of the
organisation has to face many difficulty to common the guideline of covid in workers due to lack
of knowledge. One of the serious downfall faced by the original equipment manufacturer due to
covid pandemic because most of the companies stops their production on the basis of low
demand from the market.
Development of survival and success factor for the industry in consideration to megatrends
There are many megatrends which the automobile industry witnesses before the covid but these
trends become disappear at the time of pandemic (Aydalot and Keeble, 2018) . Now when the
situation become favourable and on the efforts of government to revive the economy, the
automobile industry again belief and focus towards these megatrends. This mega trend can
become the survival and success factor for many organisations. The brief discussion related to
these trends are given below.
Increasing trend of electronic vehicle
One of the biggest and most important increasing trends which is witnessed by the
automobile industry and all the world is the trend of electronic vehicle. There are two main
reason are behind this trend that first increasing the rate of fuel in the international market and
another is the harmful effects of fuel emission on the natural environment.
There is a serious hike is seen in the price of crude oil from the past five years and this
will increase at their highest level after the covid pandemic. This hike in the fuel charge take
huge amount of person’s budget which shift the preference of the customers towards the usage of
electronic vehicle.
It is seen in many countries that the government of the respected countries shift their
preference towards the safe and healthy environment for the citizens. To protect their
environment government develops various laws related to carbon emission and vehicle
scrappage laws. The government of many countries are also provided many subsidies to
manufacturer for the production of electronic vehicles.
There are many opportunities are arising in the market related to the selling and
manufacturing of electronic vehicle for all the automobile companies. It becomes the survival
factor for those organisations which bear huge losses due to the impact of covid. These
companies have resources and technology for the electronic vehicles. They product and sell them
in the market and earns huge revenue from it.

The government of United Kingdom issues suggestion to various original equipment
manufacturer to develop different technologies which promotes the concept of electronic vehicle
and provided many instructions to develop the electronic vehicles. They provide many subsidies
in term of taxation to these OEMs to make them able for their operations.
It is an opportunity for the management of land rover to establish the effective framework in
relation to electronic vehicle in their organisation. It helps the company to bear those losses
which is occurred at the time of pandemic (Kawale and Sreekumar, 2021). It is the duty of the
management of the organisation to analyse all the opportunities from the market and work on
them with their strength. One of the most important aspect which helps the company to deal with
the competition which will arises due to electronic vehicle in the industry is effective marketing
of their product.
Marketing enables the organisation to aware their customers about the merits of their
products and services there are many methods of marketing are present in the marker such as
television advertising, sales promotion and many more which the management of the
organisation for the marketing of their product and achieve success.
One of the most important and popular method of advertisement is the digital
advertisement which can be used by the management of Land rover. Under this method,
company is required to use digital platforms such as social media, print media and many more to
advertise their cars. The chances of success in their advertising campaign is more in the social
media because there are large number of people are engaged with that and the message of the
company to large number of people
CONCLUSION
It is concluded from this report that it is very important for the management of organisation
to understand the impact of environment on the company to develop the survival factors for their
organisation in this hard time This report concludes the impact of pandemic on the automobile
industry of United Kingdom and the survival and success factors for the industry

REFERENCES
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