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  • 08-06-20
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The coronavirus outbreak has drastically affected our lives in many ways. Thousands of people across the globe are staying indoors, which has caused a major downfall in the economy. Like many other, the automobile sector too has taken a huge blow since businesses have come to a standstill. Motorcycle manufacturers and dealers across the country will have to face tough times in the near future as a result of the pandemic. Here are some ways in which the virus outbreak has disrupted the smooth functioning of the motorcycle industry:

No new customers:

Buying a motorcycle is a huge investment for anyone. With employees being laid off across different companies, the income of people is being hampered. Investing in a motorbike does not seem like an ideal decision to make when people are living with the fear of losing their jobs. This lack of purchase intention has led to a huge drop in sales. To top this, showrooms across the country have remained shut for a long time now and footfall has dropped to zero. How would any bike manufacturer achieve balance between production and sales when there is absolutely no scope left for sales?

Vanishing supply chains:

A lot goes into the assembly of a motorbike. Although the end product we see is in one piece, there are hundreds of parts that are put together to achieve this. In the case of many huge motorcycle brands, different parts are manufactured in different places. For example, the tyres might be manufactured somewhere in Chennai, and the engine might be built in Haryana. Since all means of transportation have been suspended, there is no way in which these parts can be brought together for assembly. This has led to a complete disruption of supply chains that were otherwise systematically functioning to achieve timely production.

Changing needs:

The basic need that a motorbike purchase fulfills is that of traveling. This might either be routine travel for work or occasional travel for leisure. The COVID-19 situation has affected both. With new work from home systems being put in place across various sectors, there might no more exist a need to travel for work. And with the rising threat of the virus spreading, people would reconsider going on vacations to any destination. Even after the pandemic is over, these effects will remain for a long time. Especially, the number of people traveling for work will reduce when work from home becomes a permanent system of the society. Why would one therefore invest in a product that they have no need for?

Progress on halt:

Manufactures have always tried to constantly evolve the way in which motorbikes function. Most of these evolutions are made keeping in mind the effects on environment and society. The latest progress that the automobile industry was focused on achieving is the creation of electronic vehicles. EVs would play a major role in combating the problem of pollution across the globe. But since the very basic systems are being challenged, achieving this kind of progress will no more be the primary concern of the industry. The focus will remain on rebuilding supply chains and achieving profits. The virus has therefore suspended the scope of any such progress leading to a huge setback in the visions of motorbike manufacturers.

Weakening of brand power:

Some of the major motorbike manufacturers have had a strong hold in the industry because of their brand image. These brands have spent years trying to put a value system in place that would help in gaining loyal followers. But since the COVID-19 outbreak, it has become difficult for brands to maintain their image. Any brand is sure to face criticism if it is not seen taking adequate steps to tackle the situation. The challenge of satisfying customers while facing huge losses is hard to achieve during these unprecedented times. Many brands can therefore potentially lose their power in the market as a result of the virus outbreak.

What’s next?:

In order for motorbike manufacturers to safely navigate their businesses out of the pandemic, a complete restructuring of the supply chain is necessary. Along with this, brands have to reimagine ways to building relationships with customers and creating the need for purchase. All this has to be done while keeping in mind the new systems that will arise as a result of the worldwide pandemic. The road to recovery seems like a bumpy ride which can lead to profits only with resilience and cooperation of all the members in the industry. With time and effort, we can only hope that the motorbike industry will be back on track to produce wonders for the society.
This blog is brought to you by GoZapX. We are a bike leasing service based in Gurgaon but operating in many cities across the country. We bring to you affordable and hassle-free travel solutions. Log on to our website to learn more.

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