The impacts of the COVID-19 crisis on the automotive sector in Central and Eastern
This paper aims at investigating the impact of the COVID-19 crisis on the automotive
sector in Central and Eastern Europe. It details the effects of the pandemic and subsequent
lockdown measures on the activity in the sector. It also discusses the prospects for
car sales in the short to medium run, potential spillover effects in the region, and
new risks to the supply chains posed by the pandemic. It shows that disruptions to
the supply chains had limited impact so far and that the sector has been mainly affected
by low level of demand. Going forward, the pandemic might have a significant negative
impact on investment capacity, while the transition to alternative powertrains and
the digital transformation of the industry require large investment and restructuring.
The long-term impact on CEE economies is highly uncertain, but will depend on the
capacity to maintain a comparative advantage, while the sector transforms deeply.
Published on March 04, 2021
In series:OECD Economics Department Working Papersview more titles