Is the Indian automobile market changing due the pandemic?

 

The advent of the coronavirus has put forward many challenges to every part of our lives. The incessant lockdowns have influenced the functioning of most major sectors in India. They have experienced major setbacks and the biggest impact has been on sectors like hospitality, automotive, travel and tourism, and financial markets. Various regulations like social distancing and curfews have impacted the public transportation system. It is understandable because the virus has affected everyone and it is affecting us mentally and physically. The refusal to use public transport is a safety concern and it must be respected.

 

On the other hand, people are leaning more towards using private vehicles for their needs. Whether it be for their job or daily commute, private vehicles have become the safest mode of transport. But how has this sudden change in this sector affected the automobile industry? Let's take a look at some insights into the Automobile Industry during the pandemic.

 

The Automobile Industry of India.

The growth of the Automobile Industry in India is steady and fast and by 2021 it was the fourth largest in the world. India stands second at two-wheeler manufacturing in the whole globe. Now, think about the multiple facilities which provide various raw materials like plastic, glass, metals etc. The collection of these materials has become a challenging task because of the regulations due to covid. China is usually the provider of raw materials for car manufacturers and the pandemic situation in China made the production of automobiles come to a standstill. So, ever since the virus' arrival the manufacturing of vehicles have gone through many difficult situations to keep the business going.

 

The current condition of the Automobile Industry in India.

Covid sure has made it difficult for the Automobile Industry, but the industry had been battling many issues even before covid. It is visible when we consider the number of major automobile factories and plants that have ceased operations. In FY19-20 the sales of passenger vehicles have gone down by about 18%. It is a strange drop in sales that is not entirely due to covid complications. But the Coronavirus has significantly influenced the automotive industry's sudden and huge drop in demand. As a matter of fact, the Indian car industry witnessed its biggest fall in demand and sales in recent times; precisely in the last quarter.

But it would be foolish to think all is lost. India is now faced with a huge opportunity because companies across the world are looking for alternative options for sourcing channels. The Indian automobile industry can take advantage of the situation by expanding the level of manufacturing efficiency and making the supply lines reach global standards.

 

The Indian car industry's new norm.

We must all accept the fact that the virus might not be going anytime soon. We have not completely eradicated the chances of this spreading, all we can do is take precautions. Nonetheless, non-containment zones are available to open dealerships and start functioning. The new normal will be challenging, but it will be interesting to observe how the automobile market copes with it. Regulations like social distancing, curfews and the general fear of getting infected are pushing consumers to choose to buy automobiles rather than use public transport for commuting.

The customer service and experience of buying a car is getting reinvented. Until recently, customers have been visiting numerous dealers for test driving numerous popular models of cars. But now, the whole process of selecting and booking a car has become a virtual process. Companies should adapt to the situation and figure out ways to build a virtual customer experience of superior quality.

 

The time of automobile leasing and pre-owned cars.

The need for safety from the virus is increasing the need for a private vehicle for every individual. The used car sectors could potentially reap the benefits of the increasing issue of economic uncertainty and the need for a private vehicle. It is evident from last month's reports that the demand for pre-owned cars has already seen a sudden rise. Many automobile manufacturers like the country's largest one Maruti Suzuki are enthusiastically considering leasing out their vehicles through dealership networks throughout the country. The other major manufacturers like Mahindra and Mahindra Ltd and Hyundai Motor India Ltd have already gone ahead with their car leasing services.

Car leasing is considered the most convenient and cost-effective mobility solution. Even though the idea of car leasing started to be a popular concept only recently the growth of the car leasing industry is phenomenal. The attractive aspect of saving a considerable amount of money with car leasing have driven many big firms and small-medium businesses to opt for car leasing. Most companies now provide company cars for employees and buying cars for each employee comes with its financial burden.

On the other hand, car leasing offers the benefits of using a private vehicle and other benefits only car leasing can promise. With proper adaptation to developing technology and adequate use of virtual support, car leasing companies could be the solution for worries and doubts of modern consumers in the corona and post corona period.

 

Due to the situation of Covid, everyone is required to avoid every possible chance of coming in contact with the virus. This requires us to avoid public transport as much as possible. Owning a private vehicle is a challenge since the amount of money it requires is not affordable for everyone. Even if it is affordable, compared to car leasing it would be unnecessary to spend that much to use a car. Economical monthly rentals seem like the right thing to choose for consumers who don't wish to invest in buying a car right away. The escape from maintenance and repair costs further influences customers choosing car leasing over buying. Besides, benefits like lower taxable income, 24x7 roadside assistance, no down payment, easy upgrades, relief cars, insurance cover etc. are a few of the many benefits you can savour from a car leasing service like ALD Automotive's ALD Ugo.