German automotive sector has shown s a considerable recovery during the month of October. The automobile manufacturing companies located in Germany and other parts of Europe have faced a terrible loss during the time of the pandemic. This has caused these companies to reduce their production which eventually led to zero exports of their automobile vehicles around the world. As the government has advised automobile companies to carry out their products with a limited number of employees, it has delivered considerable raise in their recovery last month. Not only in Germany, but many automobile companies and spare parts manufacturing companies located around the globe have also paused their progress temporarily.
After discussing with medical experts and also based on the suggestion from the WHO, European countries have once again announced their lockdown. It’s clear that this current lockdown will push these countries into a tough economic situation along with that it also causes a heavy recession in the other countries which are dependent on these European countries. For the fourth consecutive month, many automobile companies are facing a huge loss when the development of their new products has been continuously getting delayed. It’s quite clear that the quarterly result of the majority of these companies will be negative. Even though the government has extended its support by reducing their economical process, still they couldn’t able to meet the expected revenue and other improvements.
Big players in the automobile manufacturing industry have pushed these companies to get increased to -0.2 points in October whereas these companies reported -20.4 points in September. Spare parts manufacturing companies that are relying on these large players in the industry have also incurred a loss. It looks like the lockdown restrictions which is currently imposed on the public gathering might be extended for quite a long period of time. When comparing the number with the April figures, it’s low of -86.2 point. Companies are still facing multiple problems especially due to the slow movement of exports and imports. It looks like companies might take quite a long for reaching their old production volume.
The analysis predicted that the manufacturing of tyres using the Silicon material has a huge opportunity in the global market which was expected to get raised. Even though the Sillion based tyres are getting popular these days, there is also a demand for nylon-based tyres in the global market. Tyre manufacturing companies located in Europe have completely stopped their production mainly because of the fact the low demand. These companies have invested more than a million dollars in employing Artificial Intelligence applications in their industries. These highly computational equipment are made to process much higher speed than the manual operations.
The cars register in the month of September is said to increase up to 5% when compared with the last year production. Even though the production of these vehicles has increased over a period of time. This doesn’t provide a satisfying result because of the fact that the automobile industry has been expanding vigorously in this current mainly due to the introduction of electric and hybrid vehicles in the market. Almost every automobile manufacturing industry have entered into the production of electric motor vehicles which is basically designed to consume renewal energy as it’s fuel. During last year, most of the automobile products manufactured in German was exported to China. These two countries have signed several agreements to provide technical support and help each other in improving their infrastructure.