Study on the impact of COVID-19 on automobile industry (India) and the strategies implemented as a part of short and medium-term response

Abstract

The Automobile Industry of the country was already reeling under a slowdown, which is the worst in decades, even before the onset of COVID-19. The Auto sector of India is the fourth largest in the world. The slowdown was primarily due to low consumer demand. The Production and sales numbers continue to drop month after month, Passenger Vehicle sales declined by 24%, and Commercial Vehicle sales declined by 62%. It employs 3.5 Cr people directly and indirectly, and it accounts for the total manufacturing output of the Indian Economy. Due to COVID-19, the Auto sales had slumped to nil during April since stringent lockdown measures were in place, which did not allow any economic activities. After the lockdown was relaxed, automobile sales have started to pick-up, demand has picked up both for used vehicles as well as new. We aim to study the Auto sector for the past three years and find out the impact of COVID-19 and how it has affected the various stakeholders involved in the industry. We would also be looking at how the auto companies have responded/adjusted/modified/innovated their businesses to survive and overcome the COVID scenario and jumpstart their business. Also, we have looked at the policies that the government has implemented in order to boost the sector.