Summary: The COVID-19 pandemic has had a profound impact on the automobile industry, leading to significant changes in consumer behavior and supply chain dynamics. As businesses navigate the evolving landscape, several key trends have emerged, shaping how companies buy and utilize vehicles for their operations.

• Some US Automakers Learned that Inventory Constraints Equals Higher Profit Margins:  They plan to keep the availability of cars and trucks on dealership lots permanently constrained in the years ahead so stronger earnings will continue.
• Dealerships will have Less Inventory: Traditional dealerships, where buyers can choose a car from the lot and drive off on the same day, are unlikely to make a comeback because having too many vehicles can trigger a wave of discounts.

A Continuation of Higher Prices: The average transaction price for a new vehicle has surged from $32,000 in 2019 to $46,200 in 2023.  Manufacturers are discontinuing production of less expensive cars and trucks, favoring ones with premium accouterments which are more profitable.

More Expensive Used Cars and Trucks: The double-whammy of higher prices and higher interest rates have motivated prospective buyers to seek used vehicle purchases instead of new ones.  However, they are shocked to see prices in the used market that compare to a brand new model.

• Supply Chain Disruptions: The pandemic exposed vulnerabilities in the automotive supply chain, causing disruptions in vehicle production and distribution. Businesses faced delayed deliveries and limited vehicle availability, impacting their operations. Looking ahead, proactive fleet management will become critical as businesses seek to mitigate supply chain risks and optimize vehicle procurement.

Forecast for Businesses: The automobile industry is transforming and will significantly impact how businesses approach vehicle supply. Online car sales will continue to gain momentum, offering businesses greater accessibility and efficiency in procuring vehicles. Electric and hybrid vehicles will become a staple in corporate fleets as sustainability becomes a core focus for many businesses.

However, supply chain disruptions remain a challenge that businesses must navigate. To counter these issues, businesses must adopt agile fleet management practices and explore alternative fleet solutions. 

As the world moves towards a post-pandemic era, businesses will emphasize vehicle safety, ensuring the well-being of their employees and customers. The shift towards contactless technologies and advanced safety features will redefine the criteria for vehicle selection.

In conclusion, businesses operating in today's automobile industry face both challenges and opportunities. By embracing digitalization, technology-based safety measures, and a proactive fleet management program, companies can adapt to the evolving landscape and effectively meet their mobility needs in the future.