With all the economic headwinds our country is experiencing as summarised above, the automotive industry has not been insulated from these challenges brought on all of us by the COVID-19 pandemic.
The automotive industry across the entire value chain overwhelmingly confirmed that the underlying impact of COVID-19 on their operations this year, has had major implications for their businesses which includes, but not limited to the following challenges:
the liquidity of their respective businesses in the short to medium term;
cash flow pressures that compelled companies to honour their normal payment commitments notwithstanding their inability to generate sufficient revenues under lockdown restrictions;
managing peoples’ expectations for salaries and wages to be paid in full and/or in part notwithstanding the fact that limited services were rendered and consequently, partial revenue earned;
supply chain management and logistics challenges with numerous delivery disruptions at national ports of entry and on national roads;
limited and/or no service provision at numerous licensing and registration centres across the country which gave rise to delays in getting new vehicles sold; and
the sustainability of small and medium businesses who were the hardest hit by the lockdown restrictions and who struggled to access Government support and/or respond to their financial difficulties.