By Taazakhabar News Bureau
When good times don’t last, why should bad times remain constant?
The year 2019 was a nightmare for the Indian automobile sector. Would 2020 witness a revival of the Indian automobile sector? Industry experts feel that the worst is over and things will be back to normal soon in the Indian automobile industry.
The customer demand witnessed an unprecedented decline in 2019. Even major automobile manufacturers were knocked out cold and had to suspend working in their production plants. Some of them had to lay off their loyal, experienced and skilled workers and staff due to the worst downturn ever to hit the Indian automotive industry. This move is surely going to hurt them in the long-run.
Customer demand is an important factor for the survival of the automobile manufacturing industry. Economic slumps directly affect the purchase decisions. Customers, who are apprehensive about the future of the economy, tend to postpone spending till the good times.
This brings us to the all-important questions – will the Indian automobile industry be able to survive this crisis? Will India be able to emerge as the one of most popular manufacturing hub at par or ahead of Japan, China and USA by 2021?
India is the second largest producer of buses accounting for approximately 16% of the world’s production. As spelt-out in the Indian Government’s Automotive Mission Plan 2016-26, India was expected to produce 13 million passenger vehicles- 3.9 million commercial vehicles and 55 million two wheelers by 2026 and take a lead in the four wheeler segment by 2020.
Many industry analysts are of the view that the automobile market in India has the potential for one of the fastest growth in the next decade. India currently has 50 motor vehicles per 1,000 people, while China has more than 200 motor vehicles per 1,000 inhabitants. This is the potential that India has. Apart from abundant and easily available skilled English speaking manpower — this is also one of the reasons why — many international automakers are setting up base in India to produce cheap vehicles. Today there are many companies who are manufacturing specially designed vehicles that aren’t sold in other parts of the world, keeping in mind the Indian traffic and road scenario. As a result the average Indian consumer is flooded with choice and can now select from a wide range of Indian and foreign brands.
A possibility that certainly cannot be overlooked is that the global automobile industry is going through an uncertain phase, and India is no exception.
The Indian automotive industry is one of the fastest-growing marketplaces in the world which contributes more than 7 percent to India’s GDP and provides employment to around 13 million people directly or indirectly – a number that was expected to double by 2016.
The government of India seems inclined to bring the country at par with international standards by leapfrogging from BS-4 to BS-6 emissions by 2020. The complete manufacturing ecosystem is undergoing a phenomenal shift with many technological innovations happening at a fast pace. Understanding and adopting advanced manufacturing techniques is the need of the hour. Although there is still a long way to go before India can pole-vault itself as a hub for low-cost, high-quality products, it is nevertheless a time to accept the challenge and move full speed ahead.
Is India prepared?