Economics Project Topics

Impact of COVID-19 on Automobile Industry

Impact of COVID-19 on Automobile Industry

Impact of COVID-19 on Automobile Industry

Chapter One

Objective of the study

The objectives of the study are;

  1. To ascertain the effect of COVID-19 on production in the Automobile industry
  2. To ascertain the effect of COVID-19 on trade in the automobile industry
  3. To ascertain the level of demand in the automobile industry during the period of COVID-19

CHAPTER TWO

REVIEW OF RELATED LITERATURE

Coronavirus

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment.  Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

The best way to prevent and slow down transmission is be well informed about the COVID-19 virus, the disease it causes and how it spreads. Protect yourself and others from infection by washing your hands or using an alcohol based rub frequently and not touching your face.

The COVID-19 virus spreads primarily through droplets of saliva or discharge from the nose when an infected person coughs or sneezes, so it’s important that you also practice respiratory etiquette (for example, by coughing into a flexed elbow).

At this time, there are no specific vaccines or treatments for COVID-19. However, there are many ongoing clinical trials evaluating potential treatments. WHO will continue to provide updated information as soon as clinical findings become available

Automobile industry

The automotive industry is one of the global sources of employment, and its importance is largely derived from its linkages within the domestic and international economy and its complex value chain. The bulk of new vehicles come from moving assembly lines in refined and highly structured processes. Automotive industry employs more than 2 million people equivalent to about 5.5% of employment in the EU 27. Estimated 8.4 million employees (including manufacturers and suppliers) work in the worldwide car and truck production with major growth occurring in Asia-Pacific countries (ILO 2009). A substantial change in vehicle production in the last decades, from self-assembling manufacturers of metal and plastic parts to spin-off manufacturing companies producing in-house parts as independent companies, occurred.Country-specific allocations vary between parts manufacturing and assembly facilities in vehicle production. The biggest share of employment is in assembly. At the one end of the range is Japan – with 29% of employees working in the assembly sector and 71% of employees working in the vehicle parts sector. At the other end of the range is Belgium, with 84% of employees in the assembly sector and only 16% in vehicle parts manufacturing. Contributing factors to these allocations are history, structure, and development of the automotive industry in different countries. The individual distribution between vehicle assembly and parts manufacturing is important from the health care provider’s perspective. One of the main differences between parts manufacture and assembly is that vehicle assembly plants are often larger: Six corporations produce 75% of the world’s vehicle production, while, e.g., in the USA, there are 5000–8000 vehicle parts manufacturers. The corporate structure of larger assembly facilities has well-established implemented medical health care resources to address skin and safety issues than smaller vehicle parts manufacturers. Vehicle parts manufacturing and repair shops generate considerably more often dermatological hazards because it involves manifold processes like casting and machining of metal parts, manufacturing foam products, and extruding plastic. However, vehicle assembly requires extensive material handling as the various parts are assembled into the final vehicle.

Characteristics of automotive industry

According to history, manufacturing sectors is a key pillar of economic growth and development and until nowadays it becomes positively moderate for the economy.There are a few types of manufacturing industries which are textiles, food and beverages, aerospace and also automotive manufacturing. The automotive industry is a worldwide industry which has high competition all over the world. As the automotive sectors contribute high economic revenue for the country, the growth of the sectors should be intensified. The role of the automotive industry in the economic structure and its impact on investment flows are assessed through social accounting matrices.

 

CHAPTER THREE

RESEARCH METHODOLOGY

iNTRODUCTION

In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.

 RESEARCH DESIGN

Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.

POPULATION OF THE STUDY

According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.

This study was carried to examine rImpact of covid 19 on automobile industry. Selecte automobile industry in Lagos state form the population of the study.

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

INTRODUCTION

This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

Introduction      

It is important to ascertain that the objective of this study was to ascertain impact of covid 19 on automobile industry. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of impact of covid 19 on automobile industry.

Summary         

This study was on impact of covid 19 on automobile industry.  Three objectives were raised which included:  To ascertain the effect of COVID19 on production in Automobile industry, to ascertain the effect of COVID19 on trade in automobile industry and to ascertain the level of demand in automobile industry in the period of COVID19. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected automobile industry in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).

 Conclusion

The automobile industry has been affected by corona but to what extent it is affected is not analyzed since data of complete year 2020 is not available but from April it is taking a positive turn. By taking account of the previous recession, it is expected demand for used automobiles will increase since buying new cars will not be affordable. Automobile manufacturers must concentrate on the region with less decrease in GDP growth. Image processing, Deep learning helps automobile become smart/autonomous vehicles. Researches are done to overcome the challenges faced by the autonomous vehicle in implementation of image processing.

Recommendation

The economic growth directly effects the growth of the automobile industry. Since it is expected that the recession will hit again and the decline of the GDP will continue. The Automotive industry should concentrate on research and development  rather than increasing the stock of vehicles. The automobiles require the support of both Camera, Thermal camera and infrared camera for safe and secure driving. However, as the number and types of cameras increases it burdens the system. Research needs to be done on implementing different types of camera on single entity and technology to support different camera, sensors with the same technology. The new business strategies on the vendor/dealer side should be created to prevent further loss in industry, i.e., Providing the cars for rent, services of drivers will create a new source of economy.

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