Changes in Automotive Industry, Majorly Due To Covid-19, May Impact Growth of Automotive Sheet Metal Components Market

 


The automotive sheet metal components market is expected to grow at a healthy CAGR as companies discover ways to reduce costs while maintaining quality. While many companies have already announced plans to cut manufacturing and service staff, the supply chain will remain largely intact because the supply of these materials is tied down in many cases by a complex array of suppliers. The changes in the industry, majorly due to Covid-19, however, are starting to affect the cost of automotive sheet metal components.

Market Dynamics
Increasing launch of hybrid and electric vehicles is expected to propel growth of the automotive sheet metal components market. For instance, in January 2020, Great Wall Motor, a China-based automobile manufacturer, announced to launch its electric car Ora R1 in India in 2020.
Increasing demand for light-weight automobiles is expected to offer lucrative growth opportunities for players in the automotive sheet metal components market.
Among regions, Europe is expected to witness sluggish growth in the automotive sheet metal components market, owing to significant decline in the automotive sector. For instance, according to the Society of Motor Manufacturers and Traders, the new car registrations in the U.K. decreased by 44% in March 2020 compared that in March 2019. Moreover, North America is also expected to witness significant decline in the automotive sheet metal components market, as sales of motorcycles and cars witness downward trend. For instance, Yamaha Motor Co. has projected that the company’s motorcycle sales will drop 4.7% to 60,000 units in North America in 2020. During the fiscal year ended December 31, 2019, motorcycle sales dropped 6.3% to 63,000 units year over year. Similarly, Harley-Davidson Inc. reported that retail sales volumes dropped 4.3% in 2019 from 2018.
Competitive Analysis
Major players operating in automotive sheet metal components market include, Larsen Manufacturing, General Stamping & Metalworking Inc., Aleris Corporation, Mayville Engineering Company Inc., The Cramer Group, O’Neal Manufacturing Services, Omax Auto Limited, Novelis, Inc., Frank Dudley Ltd., Jobro Sheet Metal Technology AB, Amada Co. Ltd. And Paul Craemer GmbH.
March 2019: General Stamping & Metalworking Inc., partnered with City of South Bend’s On Demand Program that supports local employers in helping build skill sets of their employees. Through General Stamping & Metalworking Inc.’s partnership with the City of South Bend, Washington, U.S., 13 GSM employees received the opportunity to attend training aimed at expanding lean and manufacturing skill sets.

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