Summer Spikes: Some companies thrived, despite the pandemic

By Maddy Kylie

Most people can agree that the vast majority of businesses have without a doubt been disadvantaged by the pandemic. It has drastically diminished face-to-face interactions, snatched jobs, and completely altered day-to-day operations. Oddly enough, some businesses have thrived and have actually been more successful than ever amid the COVID-19 frenzy. Don’t worry, We’re not talking about Netflix, ZOOM or any other internet company—we all know they’ve done well. But, businesses within the automotive industry—a sector that was hit particularly hard-hit by COVID-19—has somehow come out on top during all the mayhem. Let’s take a look.

First up is Kia Canada. In June 2020 Kia reported June as its best month ever in Canadian history.“Amid a turbulent and declining market, Kia Canada is proud to have achieved their best month ever in its over 20-year history in Canada. Up seven percent from June last year, Canadians continue to embrace Kia with 8,647 units sold, following an inspiring month of May with 5,904 units,” reads a Kia Canada press release. Kia’s uptick in sales may be attributed to its ‘Kia Has You Covered’ promotion, in which Kia paid—not deferred—the first six months’ of payment on finance and the first three months’ payment on leases on some of their most popular models throughout the months of May and June.

Subaru Canada also had a record-breaking month. In July the automaker reported its third-best month ever with 5, 678 vehicles sold, which was a 10.1 percent increase compared to the same period last year. Subaru’s historic month was driven by its 2020 vehicle lineup. The all-new 2020 Outback set its best month ever with 1,232 units sold, representing a 14.7 percent increase over the same month last year. The 2020 Ascent posted its best July ever with 407 units sold, a 39.4 percent surge from last July. Crosstrek and Forester also had their best July, selling 1,459 and 1,368 units respectively, 2.2 and 22.5 percent increases over the same period last year.

The next one is sort of split—the company’s auto sales may not have roared, however, its value on the stock market sure did. On July 1, Tesla Inc. became the most valuable car company in the world, with the total value of all its shares on the Nasdaq, a figure known as market capitalization, adding up to $207 billion. Tesla announced that it delivered 90,650 vehicles during the quarter, better than the 74,130 vehicles that analysts who cover the company were forecasting. Although, this was still a decline of about five percent from the number of cars it sold in the same quarter last year. It’s hard to even fathom how a relatively new company could overtake vehicle manufacturers with decades of experience, but some analysts suggest that it could be associated with the world’s increasing push for the use of clean energy. It may also have something to do with Tesla’s alleged “million-mile” battery, or whispers of the automaker being very close to Level 5 autonomous driving.

Mazda also experienced a surge in sales during July. The automaker reported 7,044 sales in July 2020, up 6.2 percent from the same month in 2019. Mazda’s July prosperity is most likely attributed to the popularity of its CX-5 and CX-30 crossover. Sales of the CX-5 were the brand’s highest, at 2,901—up 5.4 percent and its best July ever—and the all-new CX-30 crossover situated itself as the second-highest seller with 1,055 sales.

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