The future of the automobile industry in India is uncertain. The COVID-19 lockdown has affected the entire sector, making it difficult to make accurate predictions. The situation is expected to deteriorate further in the months following the lockdown. The automotive industry in India has seen its worst performance in several years, despite the festive season. Due to lower demand, auto giants have had to cut production. One of the reasons is confusion regarding BS-VI norms. Another major reason is the transition to electric vehicles. Further, the recent increase in petrol and diesel prices has harmed the auto industry.
Despite these setbacks, the automotive industry has been able to sustain its sales momentum. The government has announced that the first batch of novel coronavirus vaccines will reach India in the coming months. This should help in the overall sentiment of the consumers. Honda Cars India, under the leadership of Rajesh Goel, expects a resurgence in consumer demand. Toyota Kirloskar Motor, with the executive Naveen Soni, has focused on localisation and digitalisation in order to increase their market share in the country.
The prolonged truncation of the customer demand is significantly distressing for the automobile industry in India. Most of the auto manufacturers are unable to invest in R&D and growth strategies and are suffering from low margins. As a result, they are struggling to survive despite low demand. Moreover, the government has announced that the first batch of novel coronavirus vaccines will be arriving in India soon.
As the global pandemic continues to impact consumer behavior, the automotive industry has had a tough two-year period. While the sector is projected to show some positive growth in the next fiscal year, it will take several years before it sees real growth. The economy is still hurting and raw material prices continue to hamper the auto component industry. As a result, many companies are cutting their budgets.
The automobile industry in India has a diversified customer base. Its customers are rural, businessmen, and traders. During the pandemic, the demand of a vehicle will decline and the auto industry will be hit. However, the government has also promised that the first batch of novel coronavirus vaccines will be arriving soon in the country. Ultimately, the auto industry has a chance to rebound, but there is no surefire way to predict when.
The automotive industry will continue to recover, but there is still much uncertainty in the short term. While some segments of the industry are showing signs of recovery, the economic situation will determine the performance of the industry in the coming years. There are many challenges ahead of the post-Covid-19 environment. Nevertheless, the auto industry remains resilient and will remain competitive. And the shift to private vehicles will be a boon to the entire automobile industry in India.