According to the World Health Organization, (WHO) COVID-19 is no longer a "public health emergency of international concern." This announcement officially ends the COVID-19 emergency, with many countries, including the USA easing restrictions and, in some cases, dismantling government support for vaccines and testing.
The pandemic affected industries and forced changes onto society at every level. Three years later, with the pandemic "over," the automotive industry is still working on recovery, continuing with innovative and resilient solutions and adapting to the issues faced at the height of COVID-19.
The pandemic changed the rules of the game. The automotive industry had to navigate supply chain issues and chip shortages that caused total new car inventory to fall to 835,000, a 75% decrease from pre-pandemic levels.
The pandemic blew the normal rules of marketing and buying out the window. Customers have faced high-interest rates and an average new car price of more than $50,000, the highest price ever seen, even as new car inventory is working its way back to two million.
Cloud Theory's Inventory Efficiency Index (IEI) (patent pending) provides a unique view of the automotive market, comparing a make or model's demand vs. its supply in a competitive context. The data spans all geographies, and all makes and models.
During the COVID era, there were profound shifts in scores, with some brands taking over the leadership spot and others moving in and out of the top 10 over three years.
While one of the hallmarks (and advantages) of Cloud Theory's data and insights into market dynamics is its availability in real-time, it is sometimes relevant to take a step back and look at where we've been to get to where we are. The COVID era is undoubtedly one of those times. In the wake of the WHO declaring the pandemic "over," Cloud Theory is preparing to release a report that will examine the full impact of the pandemic on the industry. The report is a deep dive on a year-by-year basis, looking at the effects of COVID-19 through key metrics, trends, and the Inventory Efficiency Index. "Understanding the impact of the various' shocks to the system' that we've all experienced over the past three plus years is essential," said Rick Wainschel, Vice President, Data Science & Analytics at Cloud Theory, "but it's even more crucial to use that knowledge to plan for whatever comes next."
COVID-19 may be officially over, but with experts predicting a 27.5% chance of another pandemic within ten years, the industry must stay focused on the lessons learned from the previous three years and stay adaptable and innovative to be profitable and competitive in a pandemic or post-pandemic marketplace. With the now published Cloud Theory report, the automotive industry can look forward to the future while taking time to examine the past.
About Cloud Theory
Cloud Theory is more than a concept. It is the eye of the storm, where cutting-edge data, software, and artificial intelligence meet deep industry knowledge and experience. Built for automotive manufacturers, agencies, and affiliates, Cloud Theory enables our customers to understand – in real time – the complex competitive world in which they do business and to make bold decisions that drive them forward. The combination of billions of data points, interactive tools, and expert consulting gives our clients the ability to weather any storm and find their way to clear blue skies. Learn more at cloudtheory.ai. To learn more about our entire portfolio of automotive brands, visit www.advancelocalautomotive.com.
