What happens on commercial vehicles market this hot summer of 2020?

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COVID-19 led to significant economic recession, having challenged numerous markets, commercial vehicles market included. Mr. Sergey Medvedev, the representative truck1.eu, has shared his perspective on what comes next with the whole industry and when the "differed demand" effect will finally entail rapid growth.

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We have to take into consideration the fact of accumulating deferred demand. And the longer the economies are in the paused mode, the stronger will be the comeback. Everyone who was planning to buy a new truck (or an expensive used one) will buy it sooner or later.

Mr. Sergey Medvedev, the representative of European online marketplace Truck1 comments on this question: “Europe is recovering from pandemic - officially. However, in practice it is the wish of authorities, but not the actual situation. COVID-19 has not left the market for good, the presence of the virus is still undisputable anywhere in the world. So it is obviously way too early to talk about returning to the before-the-pandemic levels. When it all started back in the beginning of the year, the industry knew that the pandemic would affect all of marketplaces, business activity would fall for some time but when it is gone and everything settles back in place there would be an immediate return to the previous level and maybe even growth.

Now the business is at that expected stage of 'settling' things. And yet, actually commercial vehicles market is not even on the level where it all started, it is far below in almost every field, including commercial vehicles market. The sales level is still lower than expected. The previous trend continues, expensive trucks tend to be a long-term investment, older vehicles are sold quickly.”

So Sergey has confirmed that the market is not in a hurry to recover. Why? Obviously, there is a fear of the “second wave”. The world was taught a lesson, online marketpleaces are better prepared, they know about hidden dangers, but there is still fear the virus and its consequences. Economy opens up slower, than expected, people do only the really necessary purchases. You might consider getting your trucks fleet ready for the season, purchase and change some spare parts, do the maintenance; but you still doubt the need to make big purchases, like trucks, trailers, forklifts, spare parts – or whatever machinery customers planned to buy before the pandemic started.

The question is what will happen next. In view of the mentioned fact that humankind is much better ready for the second wave (comparing to the first one), it is obvious, that if the second wave expects us in the nearest future, the industry will manage it much faster, and way more efficiently. So only the rate of economy recovery will slow down, but sooner or later the market will come back to the level it had in the beginning of the year.

Other than that, one has to take into consideration the fact of accumulating deferred demand. And the longer the economies are in the paused mode, the stronger will be the comeback. Everyone who was planning to buy a new truck (or an expensive used one) will buy it sooner or later. It is just the moment of the actual purchased is put off till things get back to normal. Insatiability is a part of the human nature, so it is just a question of time.

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Sergey Medvedev
truck1.eu
+375 291739794
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