COVID-19 Impact on Electric Scooter in Semiconductors and Electronics Industry
Coronavirus disease created pandemic situation all over the world as till the date, the remedies or vaccine for humans to prevent from corona is not found. Increasing spread and uncontrollable impact on the human life is hampering the economy of the world. Governments are taking preventive measures to lower the spread but so far it’s not up to the expectation. The demand of food and beverages has witnessed tremendous growth as well as shortage of supply owing to the panic buying from the population. The need of safety solutions, less emission and sustainable technology created major opportunity for the electric scooter market. The COVID-19 has major impact on the electric scooter market. Market players are offering the new innovative solutions and advancements in electric scooters. Market players are developing advanced solutions for customers to enhance their electric scooter operations for post COVID-19 routine through new product development, partnership and other strategies.
For instance,
- According to Economic Times, the California based EV start-up BIRD has laid off 30 percent of its employees due to coronavirus crises. The company has laid off 406 employees of its total workforce of 1,387 people.
AFTERMATH STRATEGIES FOR ELECTRIC SCOOTER MARKET AND GOVERNMENT ROLE
The COVID-19 has created major impact on the manufacturing operations as the government of various countries has highlighted the importance of health and safety which increased the demand of the smart solutions at manufacturing operations. The companies are taking preventive measures to run their manufacturing operations after the pandemic situation to safeguard their employees and their family. Governments are playing major role to support employees who have lost their jobs in such pandemic situation as well.
For instance,
- In September 2020, European electric scooters were growing in double digits up to 11.6%.
The customers have begun to use different available tools and other efficiency services. Digital transformation has become a popular option for consumers generating substantial opportunities for the electric scooter industry.
OPPORTUNITIES FOR THE MARKET IN COVID-19 SITUATION
There is positive impact of the COVID-19 disease on market as it has created opportunity to increase their presence in the online services and solutions. Implementation of safety measures to satisfy the demand for production with secured operations. There are good business prospects as some of the companies are already seeing demand for electric scooters.
For instance,
The concept of shared scooters was launched in September 2017 which has seen a huge demand from the people. This shift of people from traditional scooters to electric scooters saw a huge demand.
The manufacturers’ strategy towards safety of the people has rightly been the most important focus. The safety initiatives had been launched by the company for all the riders along with helmets. These safety standards have created a demand among people to buy electric scooter.
INCREASE IN THE ADOPTION OF SUSTAINABLE ENERGY AS A SUBSTITUTE FOR GASOLINE TO AVOID POLLUTION
FIGURE 1 Embracing The Digital: The Americas and Europe Lead By specimen
The rising adoption for the advanced technologies in the automobiles as sustainable energy as substitute for gasoline is attracting customers and motivating them to buy electric scooters as mode of transport in traffic areas.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
The companies have taken many strategic decisions to gain their market share after COVID-19. The heavy investments were done in R&D department to launch the new products and technologies. The new solution along with new ideas was developed by the companies. The most important factor driving the growth of the market is that most of the companies were offering remote services and solutions to their customers.
DEVELOPING NEW SOLUTIONS
The new electric scooters are getting equipped with connection components so that riders can connect their mobile phones and ride. The information will be stored and can be utilized by the companies for their research purpose.
OFFERING NEW SERVICES TO MANAGE THE ELECTRIC SCOOTERS
The Indian manufacturers of electric scooter HERO announced Rs. 5000 cash discounts on its product to increase the demand among customers. The various offers such as finance schemes at selected locations will be made available by the company to their customers. These new services offered by the company will increase the demand among customers.
OTHER GROWTH OPPORTUNITIES FOR MARKET PLAYERS TO PURSUE IN 2020
The market players have strong opportunity to offer efficient solution for the customers and provide information about new technologies. The technological advancements in lithium ion battery and lead acid battery are the growth opportunities for the companies.
PRICE IMPACT
The COVID-19 lockdown imposed by the governments of the countries had adversely impacted the prices of the electric scooter. The prices were set according to the demand of the market. The maintenance cost of the scooters was increased due to lockdown imposed by the government.
IMPACT ON DEMAND
The importance of electric scooter is increased in COVID-19 situation as the demand for the advanced technology having better safety measures and remote operations have increased. The COVID-19 has created strong opportunity for the electric scooter industry as people were restricted from travelling long distances and want to travel short distances.
IMPACT ON SUPPLY CHAIN
The COVID-19 pandemic has adversely affected the supply chain market which has resulted in the shortage of supply of parts and services which were provided by the companies. The supply chain market has also affected the cost of the products and its spare parts.
CONCLUSION
The pandemic situation created by COVID-19 has major impact on the electric scooter market as it has increased the importance of remote operating and digitalization in transportation. In addition, the demand from customers has increased due to less pollution and also the features offered by the companies are accelerating the electric scooter market growth. The developed nations such as the U.S. and European countries had strong adoption rate owing to growing awareness about technologies while lack of awareness and affordability is limiting the growth in developing nations.
