More than three years since COVID-19 hit the world, businesses from different industries have not fully recouped from its effects. Today, alleviating the challenges in the automotive industry is still a challenge.
DewTouch Innovations was stable enough to survive the pandemic and help some of our customers continue with their operations with the ongoing policies during that time.
We aim to alleviate the challenges that the automotive industry face up to this day, especially the vehicle rental business. We want to save time and operating costs in every way possible. Hence, we continuously create developments with the Fleetnetics ERP system.
But first, let us list down the major challenges that the automotive industry is facing today affecting the vehicle rental businesses, auto repair shops and auto spare parts distributors.
Limited resources.
Due to the impact of the epidemic and the other variants that followed, manufacturers either reduced production or completely shut it down.
Vehicle and parts shortages may still be a factor for the slow development of the automotive industry, and the Electric Vehicle (EV) industry may mostly get affected.
To add to the current challenges, there came the Russia-Ukraine war. The shortage in vehicle production, deranged distribution, and increasing energy prices such as electricity and natural gas have led to higher costs.
To recuperate from the global lockdown that prohibited the world to go outside and use transportation, our car rental customers had to come up with a solution where they can maximise the use of their existing vehicle units.
We helped them boost their presence and accessibility over the internet. Now, we are bringing something more of that accessibility.
Higher costs.
Having said that, prices of cars and light trucks have continued to rise. With COVID-19, production fell and availability of cars and trucks decreased. Automakers sold fewer vehicles at higher prices. The affordability issue is extending into used cars and trucks, which led to an even older fleet.
In addition to affecting the economy and causing a significant drop in employment, the use of older cars has led to a significant increase in the number of car accidents.
With the existing Fleetnetics ERP system, you can check the status of your internal vehicles. Moreover, alerts and notifications are automated to keep you on track in case of a busy week.
Soon, we will have a new enhancement that will not only save you some money but also a huge chunk of your time on top of the efficiency you get from Fleetnetics Rental Management system.
Financial losses.
Drastically reduced vehicle sales emerged as a critical challenge for the automotive industry during peak COVID-19 period.
Now, three years had passed, poor sales continue to be one of the industry's dilemma, with a trickle-down effect from different challenges in the automotive industry.
Given the financial losses, companies are not liquid enough yet. These automotive companies turn to banks and the government for assistance or grants. Hence, vehicle and equipment rental companies, auto repair shops or spare parts manufacturers operate with minimal capital.
This situation led us to think of ways on how to help our customers have their daily operations uninterrupted. Vehicle rental and leasing companies would want to make their assets profitable as much as they can.
Securing of approvals and reviewing job details made easier with this new product, helping car rental companies to have successively smooth transactions.
Change in consumer behavior.
While purchasing, renting and leasing are the primary ways to get a vehicle, there are other business models that are becoming more popular. For example, car pool and subscription services.
Car pool has become more common as goods and services rates, especially transport, spiked after the pandemic, and made it higher when the Russia-Ukraine war broke out.
On the other hand, car subscription service is already being offered, i.e. Grab. But with the rising prices and the purchasing behavior of buyers nowadays, environmental friendly vehicles are the way to go.
Fleetnetics has designed something that can be modified in the future in case there will be changes in the automotive industry market.
Scalability and flexibility are just two of the factors that we always consider in our constant efforts to technological developments.
Change in manpower.
The job security of workers in the automotive industry is challenged by a myriad of factors. Few of these factors are factory shutdowns, retirement of the skilled laborers and outdated skills.
The epidemic and Russia-Ukraine war have also made the situation even worse.
DewTouch may not be able to train mechanics and professionals to be the best in car repair and maintenance, but we can provide a product that is very easy to navigate and integrate with the existing Fleetnetics ERP system.
Something that is user-friendly and convenient to the new generation of workers and cost-effective to the managers and owners are what car rental companies, auto repair shops and spare parts suppliers need right now.
We have been charging something up for our customers.
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