Automotive industry and Covid-19: scenarios, impacts, prospects | CDP

Automotive industry and Covid-19: scenarios, impacts, prospects

The in-depth study, conducted together with EY and Luiss Business School, represents the second release of sector analyses that look beyond the crisis phase and offer up some ideas for leading the country to a more sustainable growth path, arguing from the perspective that the context, impact and policies inevitably differ between the various production sectors and need a specific look.

The Italian automotive sector directly generates a turnover of around €52 billion, €106 billion if indirect activities are also considered. The competitiveness of the sector is superior to that of the manufacturing industry as a whole: the Italian automotive supply chain is positioned in the segments with the highest added value thanks not only to its excellence in the production of high-end vehicles and commercial vehicles, but also because of the production specialisations characterised in particular by the component districts.

Among European countries, Italy has suffered the impact of the crisis more intensely. The full lockdown from 11 March resulted in a drop in sales on a monthly basis of more than 85%, reaching almost 98% in April. In two months the market recorded a drop of 18% compared to the total number of cars sold throughout 2019. It is estimated that in 2020 the crisis caused by Covid-19 will lead to a reduction in turnover in the sector of between 24.5% and 42%. Employment in the sector was already shrinking before March 2020. Estimates of the drop in employment as a result of the current crisis are expected to be very severe due to the blockdown of activities which, during the lockdown, affected about 70,000 workers.

How can we react? In order to develop a relaunch plan for the entire supply chain, both short-term policy interventions and more far-reaching actions have been proposed, aimed at restarting the sector, overcoming certain structural limits and relaunching it with a view to social, environmental and economic sustainability. The main lines of action to be implemented will concern:

  • the adoption of short-term policies aimed at the business continuity;
  • rethinking and renewing the Italian automotive supply chain;
  • the development of sustainable mobility and public transport;
  • research, university and training.
Read the report (Available in Italian)
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