8 APRIL 2 020 AUTOCAR.CO.UK 11
NEWS
Paris motor show is added to list of cancelled events
THE PARIS MOTOR Show will
not run “in its current form”
this year, with organisers
citing the uncertainty
surrounding the pandemic
and its economic impact.
The biennial event was due
to begin on 29 September at
the French capital’s Porte de
Versailles exhibition centre.
Alternating each year
with Frankfurt in Germany,
Paris is one of the biggest
motor shows on the calendar,
with more than a million
people attending in 2018.
In a statement, the
organisers said that the
decision was taken due to
the “unprecedented health
crisis” and the “economic
shock wave” it had caused
in the automotive industry.
However, while Paris won’tbe run as a traditional motor
show, elements of the wider
event, including a business-
focused sustainability summit
and a Smartcity festival, are
s a i d to b e “ n ot i n q u e sti o n”.
The organisers added:
“Nothing will be like before,
and this crisis must teach
us to be agile, creative and
more innovative than ever.”
The Detroit motor show,
scheduled for June, has also
been canned. The convention
centre in which it was to take
place has been earmarked
by the US government for
use as a temporary hospital.
Paris is a key
showcase for
French brands
Nio is known for
pioneering EV tech
`
The use of drones and robots may
sound a bit extreme to us, but it
has proved acceptable in China
a
begin? Our sources don’t wish
to be named, talking about car
sales in a crisis, but all of them
work for major manufacturers
or retailers, ranging from the
mass-market to luxury brands.
The first insight is that the
top has been affected less than
the middle – for now. It seems
the rich have kept on spending
and, thanks to lower volumes
and longer waiting times,
luxury brands haven’t been
thrown off course. Whether
that remains the case now thechiefly UK- and Europe-based
firms making their cars have
shut down will be a key factor
in determining how the likes of
Aston Martin, Bentley, Rolls-
Royce and others emerge.
Every mainstream car
company we polled highlighted
that the recovery has come far
faster for the companies that
used the period of lockdown to
prepare what would come next.
For instance, after an initial,
profound slump, they noted
that, as definite actions were
enforced and workers were
told to isolate, online traffic
was booming – as well it might
w i th p e o p l e stu c k a t h o m e.
A pipeline of future new car
buyers were ready to research.Some, though, were also
ready to buy. Firms offering full
online sales channels noticed
booming activity. “The number
of online sales went from a
few hundred to thousands
and thousands,” said one.
“We’ve been waiting for
online sales channels to really
take off; now I think we can say
th ey h ave b e c a u s e , eve n a s
p e o p l e h ave co m e o u t a g a i n ,
the growth has continued.”
These sales have been
backed by new sales practices.
Home delivery sounds simple
enough – dropping off a car on a
HOW SOCIAL MEDIA KEPT NIO GOING THROUGH A TRYING TIME
Chinese electric car maker
Nio was founded in 2014.
It’s known for its efforts
in Formula E, the record-
breaking performance of its
EP9 hypercar, its mainstream
ES6 and ES8 SUVs and
constantly teetering between
launching credible new
technology initiatives
and imminent bankruptcy.
It has also pioneered
a heavily online-focusedsales approach, building a
substantial following through
a dedicated app and social
media, which it credits with
helping it grow sales in China
fa ste r th a n r i va l s i n th e p o st-
coronavirus market – and
staving off the impact of a
sales-starved two months.
“The first thing to note
is that the app community
in China is very different –
perhaps the most advanced
in the world,” said Nio’s bossfor Europe, Hui Zhang. “Ours
isn’t just for customers or
would-be customers; it’s a
community. When the crisis
hit, we immediately switched
to not just selling our cars
and merchandise but also
offering video tutorials –
on everything from baking
cakes to staying safe.”
Engagement stayed high
and sales are already back
to 50% of the January total.
“The European mindsetis different,” said Zhang,
“but there’s no question in
my mind that the constant
activity on our sites kept
potential customers engaged
and is now translating into
greater sales.”
flatbed truck is hardly new – but
the means of delivering keys
and paperwork have changed.
The use of drones and robots
to maintain social distancing
may sound a bit extreme to
a British audience, but it has
been pioneered by Geely and
proved an acceptable means
of completing transactions
for Chinese customers.
The final point is around
bump-starting the industry
again after the shock.
Finding the right moment
to chase sales is never easy,
let alone after a pandemic,
but the companies we spoke
to highlighted the need to be
on the front foot and ready
both to take customer orders
and to start building the cars.
Shuttered factories can’t
be reopened overnight, but
several firms highlighted the
fact that, by being ahead of the
c u r ve , th ey h ave b e e n a b l e to
meet customer demand much
more swiftly, stealing market
share and a larger proportion
of pent-up demand as a result.
If short-term and long-term
change is inevitable as a result
of this crisis, as it appears it will
be, the positive news is that our
car industry is crucial to our
country – perhaps more so now
than ever. It has consistently
demonstrated the value and
forward thinking that has
allowed it to thrive for year
after year. Surely it will again.
JIM HOLDER