INTRODUCTION

India will become the fourth largest passenger car market in the world in 2021. It took India
about seven years to increase annual production to three million from four million. However, the
next milestone - five million - is projected in five years. The automotive industry has a long
supply chain. It should receive a large number of materials, ranging from steel to non-ferrous
metals, plastics and electronics. The supply chain must be reliable to ensure continuous
production on a daily basis. Most car manufacturers either have their own base for the supply of
materials, or suppliers are based in China. They were seriously affected by the coronavirus crisis.
As supply chains around the world are disrupted, their full impact remains to be felt. Business
leaders should prepare for the impact on production, transportation and logistics, as well as
consumer demand. They include a drop in consumer demand, which leads to a sharp increase in
stocks, as well as a shortage of spare parts and labor due to closure or reduction of production
capacities. Production.
Due to the crisis with coronavirus, automakers around the world are facing a sharp drop in
demand.This, combined with environmental factors, technological upheavals and sophisticated
regulatory frameworks, will cause difficult times for the industry.

Methodology:
The Research is being developed through a regressive study of automobile history obtained from
Wikipedia, automotive History and secondary data from multiple resources. The research
includes the data collected thorough newspaper and Web Browsing (Economical sites such as
Yahoo Finance, automobile related journals and determinants of automobile prices, International
journal of economic and management studies.)

IMPACT OF CORONA VIRUS ON THE INDIAN ECONOMY

The economic impact of the coronavirus pandemic in India in 2019-2020 was largely
devastating.International Bank for Reconstruction and Development and Credit Rating Agencies
Downgraded India's Growth for Fiscal 2021, Lowest in India's Prices for 3 Decades Since India's
Economic Liberalization within the 1990s.
The International fund for India's projection for the 2021-2022 financial year of 1.9% GDP
growth is that the highest among the G20 countries. In one month, unemployment fell from 6.7%
on March 15 to 26% on April 19. During the recovery, about 140 crore (140 million) people lost
their jobs. Over 45% of households across the country reported lower incomes than the previous
year.
The Indian economy was expected to lose up to 32,000 crore (4.5 billion US dollars) per day
during the first 21 days of full closure announced after the coronavirus epidemic.
IMPACT OF CORONA VIRUS ON THE AUTOMOTIVE INDUSTRY
The epidemic of the new coronavirus (COVID-19), which occurred in Wuhan, China, at the end
of December 2019, quickly spreads its tentacles around the world and has a serious impact on all
aspects of society, including industry.During January and February, car manufacturers and their
suppliers worked to maintain the performance of automobile assembly lines, but in March the
industry took concerted action, in synchronization with government recommendations, to ensure
the safety of its employees.
With the World Health Organization declaring the COVID-19 epidemic a pandemic, an
unprecedented global disturbance is at hand. Auto and component factories are closed
worldwide, consumer footsteps in showrooms have plummeted, vehicle sales are dropping
dramatically and almost all major industry events are either canceled or digitized. The whole
month of March was filled with news related to coronaviruses and it all started with the
cancellation of the Geneva Motor Show 2020, which was to open on March 5.
Large Indian companies such as Larsen & Toubro, Bharat Forge, UltraTech Cement, Grasim
Industries, Aditya Birla Group and Tata Motors have temporarily suspended or significantly
reduced their operations.
How did Indian automakers join the fight against coronavirus?
At now, it might not be an exaggeration to mention that the coronavirus epidemic has
completely changed life as we all know it. Efforts to contain the spread of the disease
have virtually brought an end to trade and industry. Despite all efforts, the amount of
individuals affected continues to extend, putting unprecedented pressure on the medical
system.
At a time like this, it's encouraging to ascertain that India Auto Inc has decided to step in
and contribute. From extending financial assistance to technical assistance and therefore
the manufacturing of medical supplies and medical care equipment, many automakers
have announced initiatives to fight the coronavirus.
Here may be a timeline detailing the impact of COVID-19 on the automotive industry
worldwide and in India.
Ford India introduces the new Dial-A-Ford service, which allows new customers to book
a test drive or book and have a replacement car delivered. Existing customers can
schedule a car service, with devour and drop off reception . Customers also can resolve
basic car issues via this service. The manufacturer has also defined new operating plans
for its dealers (security measures, disinfection process, social distancing within the
dealers, etc.) for the post-closure period.

 Bajaj Auto has resumed production at its factory in Chakan near Pune
(Maharashtra), starting with the shift. Chakan factory produces motorcycles under
the brands KTM, Husqvarna and Dominar.
 On May 5, Toyota Kirloskar Motor decided to resume preparatory work for its
factory in Bidadi near Bangalore (Karnataka State) and gradually resume work.
 TVS announced zero sales in April 2020, discontinuing production until March 23
due to a subsequent national block.
 Bajaj is another automaker that did not have domestic sales in April this year.
However, the corporation managed to export 32,009 units in the same period.
 Two-wheeled vehicle manufacturer Hero MotoCorp has announced that it is close
to resuming production at its plants in Gurgaon and Dharuher (Haryana),
Haridwar (Uttarakhand) and, therefore, the Global Parts Center (GPC) in Nimran
(Rajasthan).
 Expecting a loss of Rs 1,265,500, major automotive organizations SIAM, ACMA
and FADA filed a joint request to the government to resume operations along the
value chain.
 Rolls-Royce announced that it will resume production at its Goodwood plant on
May 4, making it the main automaker to resume operations in the UK after the
coronavirus stops.
 Taxis owned by Flipkart and Mahindra, Meru, have teamed up to give people
access to basic products and items during the ongoing foreclosure in Bangalore,
Delhi and Hyderabad.
 When the whole country was blocked in April, car sales stopped for a month.
Maruti Suzuki and Mahindra announced zero sale during the opening month of
fiscal year 2021.
 To support advanced workers, BMW has announced that it provides doctors with
free motor oil services for its cars and motorbikes sold through the BMW, Mini
and Motorrad sub-brands. Interested owners can access the installation through
the BMW Contactless Experience digital portal on the company's website.
 Jaguar Land Rover has announced an extension of service and warranty for its
customers. Maintenance intervals are extended by two months / 3200 km. The
corporation claims retailers will give a two-month warranty on cars where
“customer problems are reported and repairs cannot be completed due to a lock,
and therefore the warranty expires in this era.” Particular attention was also paid
to homeowners whose extended guarantees expire between March 23 and,
therefore, the end of the foreclosure. These people have the right to demand a
guarantee for repairs up to 1000 km or 30 days after the castle is removed.
 Porsche extends the warranty on new cars for three months for cars that expire
from March 1 to May 31, 2020. The three-month grace period will be valid from
the date of expiration of the warranty program for each car. the equivalent applies
to customers whose “Porsche-approved” or extended warranties must expire
within an equivalent period. These measures do not require additional costs for
Porsche owners and are applied worldwide.
ANALYSIS
 How serious was the supply disruption in China?

China accounts for 27% of imports of Indian auto parts, and the world's largest auto parts
manufacturers, such as Robert Bosch GmbH, Valeo AS and ZF Friedrichshafen AG have
factories located in Hubei. Due to the factories closed by these companies, there was a
delay in the production and delivery of cars, such as models corresponding to the fourth
stage of Bharat (BS-IV).
The blockade associated with coronavirus in China quickly revealed demand, indicating
signs of a V-shaped recovery. , JM Financial says that despite the continued slowdown in
economic activity caused by COVID-19, the medium-term outlook for tractor sales
remains positive, due to the high level of rabi production, good tank levels and monsoon
expectations that were normal during the 20th century . He said the tractor industry will
recover to PV, then 2W and CV.
 How has the impact been on demand?

In March 2020, all OEMs experienced a large drop in wholesale sales due to the COVID-
19 lockout and the BSVI transition. COVID-19 caused supply chain disruptions and
production shutdown in the second half of March 2020.
In the case of PV, OEMs like MSIL, Hyundai and Toyota outperformed their
counterparts, driven by the early switch to BSVI and a low BSIV inventory. While MSIL
shipped approximately 77,000 units domestically with sales down 48% year-over-year,
sales of Toyota / Hyundai fell 45% / 41%, respectively. In 2Ws, OEMs encountered
problems with existing BSIV inventory with dealers, which was exacerbated by the
lockdown associated with COVID-19 and limited SC relief on the sale of BSIV
inventory.
According to a report published by Fitch Solutions, vehicle production in India should
contract by 8.3% in 2020 after an estimated drop of 13.2% in 2019. Covid-19 will also
make the transition to BSVI emission standards difficult.
 What are the short-term prospects for the automotive sector?

According to HDFC Securities, the automotive industry in India is likely to experience

multiple disruptions in the medium term of mobility services and electric vehicles. He
said electric vehicles are at the start of the S curve, while shared mobility is at the growth
stage. However, sustained profitability is essential to guarantee the scale and longevity of
operations, and business models will continue to evolve on the roadmap towards
profitable growth.
The growth is now coming from operators based on 2W because traditional aggregators
based on the cab (Ola, Uber) cannot extend beyond large metros. Start-ups such as
Bounce, Vogo, Yulu are focusing on the bicycle rental model while Rapido has adopted
the bicycle aggregation model. This last segment is growing exponentially (on a low
 basis) with a current market size of $ 150 million. These services are growing in Level I
and Level II cities due to the economical tariffs / improved connectivity.
 How was the take-off of electric vehicles in India?

There was a surge in electric vehicle development activity after the FAME-II program.
2W OEM manufacturers have launched high-end scooters (Ather 450x, Bajaj Chetak,
TVS i-Qube), car manufacturers have launched high-end products and electric buses are
promoted by Chinese and national manufacturers. However, the massive adoption of
electric vehicles is only expected in the medium term.
As EV technology and bus services advance into Tier II cities, the growth rate of two-
wheeled vehicles will be affected in the medium term. Industry growth has already
slowed to 6-8% (compared with double-digit growth earlier), with penetration rates
exceeding 50% of households in India. We believe that since the second mechanism used
by households is cannibalized, the industry is expected to grow from 5 to 5%.
Passenger cars will adopt alternative technologies such as hybrids on the winding
electrification route, while commercial vehicles (passenger buses) are the first to adopt
EV technology, spurred by the State in the part of the FAME-II program. A limited
pricing infrastructure and high product prices are, however, a major constraint.

CONCLUSION
As the current foreclosure comes to an end and companies plan to relaunch their operations, it
will actually take fifteen days of preparation to relaunch business operations. This will cover all
aspects of employee engagement, cash and liquidity management, sales and marketing recovery,
and business continuity. Of course, as the industry will find it difficult to get back on its feet,
specific support can offer a chance in the arm. The liquidation of BS IV's shares has already been
eased through the Supreme Court. The extension of the moratorium on the payment of principal
and interest will provide additional relief.
Additional support will be required to defer filing deadlines such as the GST return, TDS
payments, EPF filings. Extend the Social Protection Supplement credit further and treat it as a
CSR expense on employee salaries for Covid-19.
Authorize short-term overdrafts and interest rate subsidies to manage working capital
requirements; Allow the banking sector to provide channel financing to the concessionaire /
network. Offer a limited-time exemption on demurrage at ports, railway stations, etc. for blocked
/ in transit materials and ensuring priority allocation of rail and logistics infrastructure to relieve
the supply chain.

References
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[Online] // wikipedia. - www.wikipedia.com
[Online] // youstory. -www.yourstory.com
google scolar [Online]. - www.googlescholar.com
multiple pages [Online]. -www.google.com
Research gate [Online]. - www.researchgate.in