The coronavirus pandemic brought a brutal and challenging period for the automobile industry in the current fiscal.The industry has moved in sync with the Indian economy during the past few years and was already battling with sluggish capacity, poor demand, and high cost of production. Despite the fact that the pandemic has affected the automotive industry in a negative way, the automotive industry maintains a very strong positive influence and significance over the Indian economy.
Below are some of the positive aspects of the coronavirus impact on the automobile industry as a whole.
Dealers’ Phygital Approach:
A phygital (physical plus digital) approach has brought about a contactless atmosphere with the touch-and-feel element. The pandemic has brought to the vanguard an opportunity for quick adoption of digitisation in the passenger vehicle segment, setting the focus on a contactless environment. For example, Autovista has been able to bridge the gap in its customers online experience, by adding key elements to the process that make booking a car easier than before. The covid-update in their processes is in compliance with the new normal that customers are comfortable with and has also made e-booking of Maruti Suzuki Cars very user friendly.
Opportunities and Revival Strategies for the Automobile Sector
There is never a one-pill solution for any business contingency at any point in time. Extremely uncertain times like these brought about by the coronavirus pandemic has educated businesses of the value of risk assessment and thereby preparing contingency policies for businesses. It is now strongly believed that the companies that survive this storm will be able to emerge stronger in the post-covid era.
Rise of private vehicles:Private use vehicles is expected to see an expansion attributable to diseases, wellbeing and security worries with shared mobility. However, there are possibilities of equal opportunity for shared mobility also due to the size and forthcoming growth of the industry. In addition, the substitution of shared portability vehicles is 50 per cent quicker than individual use vehicles.
Relying on local manufactures :The world will not easily believe in Chinese products. China has been at the nerve middle of the car supply chain for a really long time. It is time now for worldwide companies to de-risk themselves from China and look for alternate sourcing channels. This is where India can pitch in. Generally striving to become an Indian component producer to seize industry share from Chinese suppliers. Like many countries, India depends on China for products such as electronic parts and drug ingredients as it cannot make them or source them. Now the emphasis is given to India to produce its own components and avoid its sole dependence on Chinese suppliers.
Standardization:Global clients require creative world-class products and services at all times. This could be a great resort for Indian makers to boost their production level and supply chain to global standards. It demands very high degrees of hygiene, cleanliness, standardisation, and visualisation at the shop floors. It also calls for a system led approach to the businesses.
Creating Job Prospects in the Indian Market
Alternate and related businesses like aerospace, medical appliances, and consumer goods provide new opportunities to the automobile component designers and makers. Many customers will redefine their supply lines shifting from China; it would be a big chance for auto component creators to pitch in with the global players and strike associations.
Based on the above, companies may be forced to draw out new plans for - ‘The New Normal’ world. Indian companies seek to grab the great opportunities to create better business networking chains and establish global business networks of suppliers and customers. Investments in these areas would take them far and away from future coronavirus-like impacts.
Various research reports suggest that pent-up demand and first-time buyers could help the automobile sector rebound in the post-Covid period. Moreover, the survey also indicates a shift in the preferences, with consumers likely to go for a personal vehicle than travel by public transport. The rise in numbers, if it turns into reality, could be applied to people above the age of 35, as a majority of that age group aims to abide by private vehicle travel only.
There is understandable anxiety amongst a wide section of customers regarding hygiene and safety, which is driving the preference for private vehicles.
EVs in the Post Covid Era - The future Way Ahead
With “environment-friendly” becoming the recent buzzword, the potentials of Electric Vehicles cannot be ruled out wholly. While several crucial issues – charging points for such cars, their repair and maintenance, and high price – remain, India has already ventured on a driving mission to become 'electric car-friendly'.
According to the National Electric Mobility Mission Plan, the government sought six to seven million electric and hybrid cars on the roads by 2020. The Narendra Modi government took this concept further by promising to permit only electric cars by 2030.
After the lockdown, there is a strong expansion for EVs.In the post-Covid-19 world, automobile giants are inclined to continue retailing their EVs as “green mobility”, spelling out the environmental privileges of owning such a car.
There are two positive advancements arising from COVID-19 :
- The China supply chain alarm is forcing major investments in the “Make in India” drive.
- The COVID-19 crisis has exposed chinks in the automobile business model and it could be a big shift towards electric vehicles (EVs). That could be a big positive for the automobile sector. All in all, in the case of the Indian automobile industry, there are silver linings post coronavirus roadblocks.