How the automobile industry has been affected by this pandemic

The outbreak of Coronavirus has majorly affected the automobile industry and autonomous vehicle (AV) industry. The demand for vehicles has significantly decreased which will also affect the future of the industry. According to the reports, India was supposed to be the World’s fourth-largest passenger-vehicle market by 2021. The automobile industry took a long way to improve its business in India. The annual production had finally started taking an upturn from three million to four million vehicles in around seven years. 

However, after this outbreak, it has all gone downhill once again. The main reason for the downfall, apart from the significant decrease in demand, is the supply chain process. The industry outsources a large number of materials from steel to non-ferrous metals, plastics, and electronics. Some vehicle makers have their own supply of these while others were dependent on China for these materials. China was one among the primary countries to be hit by the pandemic, causing a serious disruption within the supply chain of the car companies. The automobile industry is waiting for a good time to return by looking for solutions and rethinking their strategies. The current situation is extremely unpredictable but it is a crucial time to plan for risk management and eventually build a contingency plan. 

Post-lockdown, analysts believe that the demand for having a personal car will increase as people will become more concerned about their safety, and using public transport could be dangerous. It is a tough and challenging time for the automobile industry but good times should return sooner than later.