After the Megatrend shock, the industry has practically shut down operation. Almost all manufacturing facilities temporarily close due to the drop in demand. The industry is predicted to experience minus growth this year.

Accordingly, sales of supporting industries, i.e. lubricant, OEM and AM components, workshops and car-care services are also expected to decline as mobility is restricted.

Mobility relatively sustained or most likely increased in logistics segment and manufacturing. General people transport and domestic mobility is declining.

Although there is less likely for the AM supporting industry to shift channel, we observed DIY minor service is currently widely practiced among consumers. For certain product category such as lubricant, oil filter, battery, and other car-care products are potentially shifting to on-line Channels. Thus, the O2O strategic initiatives should be strengthened now.

Since the new normal is now, industry players should refocus their efforts to less impacted segments, i.e. industrial and logistic segments.

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