The European car market will face three potential scenarios from the ongoing COVID-19 crisis, according to a whitepaper produced by used vehicle pricing and market analysis company Indicata.
It says that even in a best-case scenario, there will be a severe short-term hit to the market over a six to nine-month period, but the underlying resilience of economies coupled with government stimulus will support a quick recovery.
A worst-case scenario will see significant damage to economies with the global economy taking years to recover to pre-crash levels.
A middle scenario would see a slow recovery that mirrors the global financial crisis that hit markets a decade ago.
During the financial crisis, it took two to four years for markets to recover fully, with Germany quickest to rebound, while Spain and Italy took the longest.
The whitepaper says the challenge for the industry will be to manage volatility and prepare for long-term disruption to residual values if demand is subdued by long-term economic hardship.
It said remarketers and fleet planners will need the ability to identify the changing fortunes of national markets, quickly expand channels and country remarketing programmes when possible and closely monitor retail market dynamics.
Andy Shields (pictured), global business unit director at Indicata, part of the Autorola Group, said: “Countries will have different challenges at different times and it’s all about equipping companies with the right data to help assist them to make fast decisions, which is where our pricing insights come into their own.”
You can download the whitepaper here https://www.indicata.co.uk/corona
