Breakdown Mode of India's Car Industry

Breakdown Mode of India's Car Industry

As we all Know that Indian economy is facing slowdown, same as with Automobile industry since after ending  June 2019 automobile industry is facing huge loss. According to records passengers car sales has been declined by 31% in July and 29% in august in 2019 as compared to last year. it was highest loss as compare from last two decades. As automobile industry provide employment to 3.5 crore  people, so decline of automobile industry is matter of serious concern. 

As we all know that electric vehicle is future of automobile industry, so as government also promoting electric vehicle. The demand for electric vehicle will slowdown the growth of diesel engine vehicle. 

As per Supreme court ruling, Post 1 April 2020 only BS-VI engine car will be sold, so in respect of this may be buyers are holding their purchases. For some car manufacturer such as Maruti Suzuki is unable to upgrade its car from BS-IV to BS-VI because of high cost of production.

Impact of Pandemic on Indian Car Industry

India will be world's fourth largest passengers vehicle market by 2021. It takes India seven years to increase it's production to 4 million vehicle from 3 million vehicle. 

Due to pandemic As supply chains around the word has been disrupted, the full impact yet to be felt.

More than 100 of factories producing variety of vehicle in India and all the factories were ordered to be shutdown for more than 1 month due to pandemic .

It is first time in the history of automobile industry, that industry has reported Zero sales in the month of April 2020. Due to huge loss toward automobile sector employment of automobile sector will also affect, such as automobile industry provide employment to almost 3,5 crore people.