The most unexpected coronavirus (COVID 19) pandemic has caused a great loss to the global world. Furthermore, the government’s decision of making a lockdown has lead to the economic condition. However, as lockdown nears its end, the various businesses should effectively plan to jumpstart their business operations. Though it may vary from sector to sector, some of the aspects like employee engagement, sales and marketing revival, cash and liquidity management, and operational continuity need to be carried out with utmost concern. In this worst COVID 19 pandemic crisis, the automotive industry and other important sectors that majorly contribute to the Indian economy will experience a great downfall. But with the timely government intervention, these sectors could experience recovery to some extent during post lockdown.
Though coronavirus (COVID 19) was first originated in end-December 2019 in Wuhan (China), its outbreak led to unexpected global disruption. Especially in the automotive industry, the automakers and the suppliers were scrambling in order to maintain vehicle assembly lines humming. In addition, automobile and component manufacturers have been shuttered down, consumer walk-ins to showrooms have been decreased, and automobile brands are experiencing a huge fall in vehicle sales. Thus, in order to be safe and for consumer safety, most of the industries are going through the digital way or canceling their events.
COVID 19 pandemic will greatly impact on stakeholders in the value chain. These stakeholders could experience both short-term and long-term impacts and might vary from the shortage of raw materials, liquidity crunch to delays in availability of models, production shifting to other countries, postponed launches, and shrinkage in the consumer demand. This could greatly impact the economy depending on the spread of the outbreak. Furthermore, here are some points to help you know COVID 19 pandemic impact on the automotive industry.
- On April 8th, Hyundai has introduced a new option called ‘Click to Buy’ on all the Pan India online car sales platform. Thus, customers can buy a Hyundai car online with no physical visit to a dealership.
- During the lockdown period, Renault and several other companies have extended or announced a relaxation of the warranty period and timely service schedule of the cars.
- Bajaj Auto, the two-wheeler maker has rebooted its operations in the Aurangabad plant with only 850 workers inside the factory. This caters to the company’s export demand to fulfill orders worth Rs. 1,000 crore.
- As the whole nation was under lockdown in the month of April, there was a huge drop in the automotive sales for the month. Thus, Mahindra and Maruti Suzuki have reported zero sales in the first month of the financial year FY 2021.
- Furthermore, due to the nationwide lockdown in various countries, global vehicle sales in March 2020 has dropped down to 39 percent e. 55.5 lakh units as compared to 90.3 lakh units a year ago.
- In addition to this, Bajaj was also one of the companies that registered under zero domestic sales for April month 2020. However, at the same time, Bajaj has managed to export 32,009 units.
- TVS is also one of the companies to report nil sales in April 2020.
- Now, most of the automobile companies have resumed their production work with single shifts or double shifts considering all the protocols like sanitization and social distancing being implemented.