The approach of automotive industry in 2020 was largely subdued as the issuance of trade restrictions brought a drastic slowdown in key sectors. Amid the doldrums of the pandemic, harnessing a digital business model and focus on financial health greatly enabled automobile companies to continually persevere and push forward.
Despite endless hurdles faced last year, some green shoots appeared toward the second quarter as demands briefly resurfaced during festive seasons. Domestic retail vehicle sales across categories grew for the first time since the onset of the pandemic, as a double-digit growth was achieved in the sale of passenger vehicles (PV) and two-wheelers, posing to be a good omen for the New Year.
While industry experts continue to be cautiously optimistic, recent projections from Indian Independent and Professional Investment Information and Credit Rating Agency (ICRA) show that the domestic auto component industry’s revenue may grow by 16-18 per cent in the subsequent financial year. There have also been speculations that demands may revert to the 2019 levels, in case auto sales and production retain normalcy this year. With potential development of the COVID vaccine, in consort with a rising preference towards personal mobility, consumer sentiment may too tip in favour of the industry.
Commenting on the industry and its leading exhibition in the automotive aftermarket, Mr Raj Manek, Executive Director & Board Member, Messe Frankfurt Asia Holdings Ltd., shares: “It is very vital to provide a push to local manufacturers to bolster the domestic supply chain and strengthen the automotive industry from its very core.”
With world’s leading electric car company setting up its base in India, it will be just a matter of time before the first fleet of electric cars arrive in India. “Thus, a more resolute approach towards e-mobility by OEMs will largely benefit in the long term.”, adds Manek.
As one of the leading automotive exhibitions of…