Facing current uncertainty and embracing the future

February 2020

The normal operation of the automotive industry has been challenged and affected by the epidemic, especially on consumer demand, followed closely by marketing, operation and supply chain. Many OEMs, dealer’s group and parts suppliers have taken a number of steps to ensure the bottom line. The crisis has prompted many practitioners and managers in the industry to re-examine and plan for the medium-and long-term development of auto industry, accelerating industry transformation and upgrade. In this article, the PwC Automotive Team analyzes the epidemic from three perspectives: short-term challenge, current initiative focus and long-term development.

Section I: Short-term challenge

1. Sluggish customer demand

2. Disrupted supply chain

3. Huge cash flow pressure on both upstream and downstream 

4. Suspended offline marketing activities

Section II: Current initiatives focus  

1. Seize the first-purchase opportunity

2. Promote online marketing and digital management

3. Strengthen the support and management of dealers during the outbreak and introduce innovative after-sales service

4. Enhance the construction of supplier risk prevention system and build ecosystem to resist risk together

Section III: Long-term development

1. Enhance innovative product features and build up health + vehicle ecosystem

2. Promote multi-circumstance applications

3. Enhance data management skill and realize last mile application

4. Accelerate the R&D of autonomous driving technology

Contact us

Jun Jin

China Consulting, M&A Consulting Leader, PwC China

Tel: +[86] (10) 6533 2977

Huchu Xu

Partner, Strategy&, PwC China

Tel: +[86] (21) 2323 5622

Steven Hai

Partner, PwC China

Tel: +[86] (21) 2323 2717

Steven Jiang

Partner, Strategy&, PwC China

Tel: +[86] (21) 2323 5101

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