The Coronavirus scare has impacted on business even in Nigeria
Coronavirus is a deadly infectious disease that everyone is worried about currently. In addition to health concerns over the epidemic, the virus is also seriously affecting the world's economy as companies cannot function as they used to.
Most developed countries are fighting hard to stop the virus-scare from causing more damage to their and the world's economy. However, there is an increment of infected individuals on a daily basis, and more industries are affected each day.
Coronavirus and the auto industry
One industry worldwide affected is the automotive industry. For instance, in February alone, China's auto sector lost 80% of its capacity.
Most international businesses are gradually experiencing challenges in shipping down their goods and services to their customers all over the world and automotive is not left out.
Nigeria's automotive industry highly depends on automotive industries in Asia, Europe, and America. Coronavirus threatens Nigeria's automotive industry as the auto dealers and companies encounter several challenges in shipping down car parts from the affected countries like China, Italy, and Japan.
China lost 80% of capacity in the auto sector in Feb, 2020
Coronavirus and the Nigerian auto industry
Nigeria's automotive industry is beginning to experience a lot of challenges in meeting obligations to car buyers and car owners. Nigeria has over 11 million registered cars on the roads. That means a constant supply of spare parts and other car accessories to keep them mobile on the roads.
There is also the need for fresh whole vehicles for thousands that buy a car every day. When supply breaks down, it has a huge impact on the country.
How car and spare parts exports have fallen from China, Japan, and Europe
Most big automotive manufacturers in developed countries are facing a lot of challenges due to the outbreak of this virus.
Coronavirus, which started from Wuhan China, has caused numerous automakers within China, to shut down operations for a while.
As the virus continues to escalate to neighboring countries, most car and spare parts manufacturers across the affected countries have to suspend their jobs for safety. Because of the international activities carried out across the world on a daily basis, the virus was able to spread so quickly across continents.
Imported cars are growing a bit more difficult to bring in now
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Automakers in China, Japan, and Europe experienced a shock resulting from global markets crash. Since international markets are crashing globally, and people are becoming more scared to go out and about their regular activities, productivity is low.
In addition to this, the automotive companies in China, Japan, and Europe are seriously experiencing low turnout from their customers. Most automotive industries in China, Japan, and Europe have shut down their principal operations because of the COVID-19.
There is a decrease in exports of cars and spare parts from developed countries to Nigeria. The few companies that export their cars and spare parts increased their prices which is not to the advantage of Nigerians automobile dealers.
How car owners and mechanics are affected by expensive parts
Every mechanic in Nigeria is feeling the effect of the coronavirus impact on the global market. Most car owners find it a bit tougher to fix their damaged cars, as a result of the increased price of spare parts.
Since the outbreak of coronavirus, the cost of shipping down the car components has increased. When you visit any mechanic workshop to fix your damaged car, you will notice that the cost price of repair has changed from the regular price.
Most car owners prefer to manage their damaged cars as a result of the increased cost of repair.
Most middle-class mechanics are already finding it difficult to restock their workshops because of the cost difference. However, medical experts are working tirelessly to tackle the COVID-19 in China, Japan, and other affected countries across the world. But the world is still in panic as more people are contacting the virus on a daily.
Some automotive companies have resumed their regular activities, even though their working strength is not as before. The export of car components can only return to normal when the makers are back in full force.
Coronavirus hurts global auto industry
How shipping companies contribute to the price increment of cars and spare parts
The shipping companies partly contribute to the price difference of cars and spare parts shipped into Nigeria.
Since most automakers have reduced their manufacturing capacity, the shipping companies have fewer cars and spare parts to ship down to Nigeria. To recover their losses, they have to increase the shipping fees of cars and car components shipped into Nigeria.
However, the shipping companies may adjust their pricing when the market returns to its regular operating rate. This added price has deeply affected the Nigerian automotive industries, as businesses are no longer going on as usual.
The amount required importing cars and spear parts have changed, and most Nigerian automotive industries are struggling to stay in business. Some investors in these industries are already feeling insecure as a result of this change.
China is the origin of the virus and a big auto trading partner for Nigeria
How the coronavirus will cause more damage if the problem persists
The Nigerian automotive industry is already feeling the impact of coronavirus on the global automotive industries. However, if the virus continues to hit the global automobile industry, the Nigerian auto sector could suffer greatly.
Many car owners may drop their cars and join the public transport system. However, if experts are able to resolve this global threat fast enough, the world's economy will return to its previous state. That is how How Coronavirus threatens Nigeria's automotive industry.
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