International Journal of Management (IJM)

Volume 12, Issue 4, April 2021, pp.275-282, Article ID: IJM_12_04_024

Available online at http://iaeme.com/Home/issue/IJM?Volume=12&Issue=4
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.12.4.2021.024

© IAEME Publication Scopus Indexed

THE IMPACT OF COVID-19 ON THE

AUTOMOTIVE INDUSTRY IN INDIA
Gaddipati Raama Haneesh
Student, Bachelor of Business Administration, Jain University, Center for Management
Studies, Bengaluru, Karnataka, India

Abhishek Venkteshwar
Professor, Course Facilitator, Jain University, Center for Management Studies,
Bengaluru, Karnataka, India

ABSTRACT
The beginning of Covid-19 in India had contrarily affected the auto business. It is
assessed that there will be a general income effect of at any rate $1.5 - 2.0 billion every
month across the business. Even after we open up, further decrease in traveler vehicles
request is normal with optional spend assuming a lower priority. A delayed truncation
of shopper interest because of the lockdown has fundamentally influenced vehicle
producers' incomes and incomes. Accordingly, most organizations are famished of
R&D financing to support center activities, and possibly slowing down the advancement
made on substitute fuel and versatility innovations by two to four quarters. Hence it’s
now the responsibility of the automakers and the government to stabilize the lost
industry and get them back on track. The government can support in a numerous ways
to the automakers and help them maintain the industry if not to the top but to survive. A
lot of families are dependent on this industry and that is directly proportional for their
living standards to be stable or deteriorate
Key words: Covid-19, Automotive Sector, lockdown, Economy, Government.
Cite this Article: Gaddipati Raama Haneesh and Abhishek Venkteshwar, The Impact
of Covid-19 on the Automotive Industry in India, International Journal of Management
(IJM), 12(4), 2021, pp. 275-282.
http://iaeme.com/Home/issue/IJM?Volume=12&Issue=4

1. INTRODUCTION
1.1 Covid-19
Coronaviruses are a huge group of infections that are known to cause sickness going from the
basic virus to more extreme illnesses like Middle East Respiratory Syndrome (MERS) and
Severe Acute Respiratory Syndrome (SARS). Coronavirus (COVID-19) was distinguished in
2019 in Wuhan, China. This is another coronavirus that has not been recently recognized in
people. (Fauci, 2020)

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 The Impact of Covid-19 on the Automotive Industry in India

Kumar (2020) brings to light regarding the Covid sickness (COVID-19) pandemic, which
began in the city of Wuhan, China, has immediately spread to different nations, with numerous
cases having been accounted for around the world. As of May 8th, 2020, in India, 56,342
positive cases have been accounted for. India, with a populace of more than 1.34 billion—the
second biggest populace on the planet—will experience issues in controlling the transmission
of serious intense respiratory disorder among its populace.
Numerous procedures would be profoundly important to deal with the current episode; these
incorporate computational displaying, measurable instruments, and quantitative investigations
to control the spread just as the fast improvement of another treatment. The Ministry of Health
and Family Welfare of India has brought issues to light about the new episode and has made
vital moves to control the spread of COVID-19. The focal and state governments are taking a
few measures and forming a few wartime conventions to accomplish this objective.
Besides, the Indian government executed a 55-days lockdown all through the country that
began on March 25th, 2020, to lessen the transmission of the infection. This flare-up is
inseparably connected to the economy of the country, as it has drastically blocked modern areas
since individuals overall are presently wary about participating in business in the influenced
districts. (Kumar, 2020)

1.2 Automotive Industry in India

Mishra (2020) asserts that the worldwide pandemic brought about by Covid comes a time when
both the Indian economy and the auto business were expecting recuperation. While the GDP
development estimates were north of 5.5%, COVID-19 may bring about an adverse
consequence of 1-2% on the normal development rates. The total size of effect relies upon the
term of continuous lockdown and the effect caused of this pandemic.
The beginning of Covid-19 in India had contrarily affected the auto business. It is assessed
that there will be a general income effect of at any rate $1.5 - 2.0 billion every month across the
business. Even after we open up, further decrease in traveler vehicles request is normal with
optional spend assuming a lower priority. This will be combined with change to BS-VI
standards that will build cost of possession. (Mishra, 2020)
Singh (2020) proclaims that the car area had effectively gone through impressive stoppage
throughout the last 12-year and a half because of primary changes starting with the merchandise
and administrations charge (GST), shift to shared versatility, pivot load changes, the change
from BS 4 to BS 6 progress, liquidity crunch, and so forth The COVID-19 lockdown has had a
multiplier impact – the business has nearly been at a total halt since March 24. A delayed
truncation of shopper interest because of the lockdown has fundamentally influenced vehicle
producers' incomes and incomes.
Accordingly, most organizations are famished of R&D financing to support center
activities, and possibly slowing down the advancement made on substitute fuel and versatility
innovations by two to four quarters. In the end, a few organizations may even accept an essential
call to exit unbeneficial markets and vehicle portions. (Singh, 2020)

2. REVIEW OF LITERATURE
Sengupta (2020) states that the episode of the Covid-19 pandemic is a phenomenal stun to the
Indian economy. The economy was at that point in a parlous state before Covid-19 struck. With
the delayed country-wide lockdown, worldwide monetary slump and related disturbance of
interest and supply chains, the economy is liable to confront an extended time of stoppage.
The size of the monetary effect will rely on the term and seriousness of the wellbeing
emergency, the span of the lockdown and the way wherein the circumstance unfurls once the

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 Gaddipati Raama Haneesh and Abhishek Venkteshwar

lockdown is lifted. In this paper we depict the condition of the Indian economy in the pre-
Covid-19 period, survey the expected effect of the stun on different fragments of the economy,
dissect the arrangements that have been reported so far by the focal government and the Save
Bank of India to improve the monetary stun and set forward a bunch of strategy suggestions for
explicit areas.
Garg (2020) asserts that the flare-up of Covid sickness 2019 (COVID-19) has caused more
noteworthy than 2,900,000 + affirmed occasions in the world and articulated in 210 nations as
on April 26, 2020 Due to natural nature of the novel Covid, named extreme intense respiratory
disorder Covid (SARS-CoV-2) with quicker spreading and obscure transmission design, it
makes us in an issue capacity to consolidate the sickness transmission all around the world. To
date numerous nations are in lockdown to keep from individuals from Covid by this economy
has been influenced and needs to exposed the misfortunes.
Aruga (2020) explains that soon after the Indian government provided the primary
lockdown rule to adapt to the expanding number of COVID-19 cases in March 2020, the energy
utilization in India plunged significantly. Nonetheless, as the lockdown loose, energy utilization
began to recuperate. In this examination, we researched what COVID-19 cases meant for Indian
energy utilization during the COVID-19 emergency by testing if the lockdown discharge
emphatically affected energy utilization and if more extravagant areas were speedier to
recuperate their energy utilization to the level before the lockdown.
Utilizing the autoregressive appropriated slack (ARDL) model, the investigation uncovers
that a since a long time ago run relationship holds between the COVID-19 cases and energy
utilization and that the COVID-19 cases positively affect Indian energy utilization. This
outcome demonstrates that as lockdown loose, energy utilization began to recuperate. In any
case, a particularly certain effect was not evident in the Eastern and North-Eastern locales,
which are the most unfortunate areas among the five districts researched in the examination.
This suggests that less fortunate districts need extraordinary guide and strategy to recuperate
their economy from the harm experienced the COVID-19 emergency.
Seetharaman (2020) brings up that no measure of gem ball looking may help us comprehend
the full effect of the Covid-19 (C-19) emergency on business associations in a particular way.
Given the absence of priority, any such examinations appear to request routine updates as we
progress further up the "quantity of contaminated" bend. Most nations of the world have forced
limitations on friendly assemblages or even individuals working in closeness to one another.
Ventures that create and convey data items and administrations consequently, have kept on
working while those that fabricate actual items particularly work escalated firms had to limit
activities or briefly shut down. Be that as it may, in many nations, actual items which were
fundamental in nature were hesitantly allowed to be fabricated given the requirement for them
in individuals' regular day to day existence. In this perspective, I draw upon three measurements
– data force of item/administration, data power of cycle/esteem chain; alongside a third
measurement – fundamental nature of the item/administration to help comprehend the prompt
ramifications of C-19. I likewise present some narrative confirmations of endeavors to modify
plans of action in these conditions to address the difficulties that specific item qualities force
however at the equivalent gain by the business openings introduced by the vitality of the items.
Rakshit (2020) states that the COVID‐19 pandemic has influenced various areas of the
economy in a phenomenal manner, and this article is an endeavor to break down the financial
impact of the flare-up in India. Notwithstanding, before we survey the monetary expense related
with the pandemic, we financial specialists completely think about the flare-up as a human
misfortune. There has not been any econometric strategy that can account the endless human
sufferings that the emergency has brought. Through this article, we address a few significant
examination questions and show India's solidarity to remain safe to battle COVID‐19 pandemic.

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 The Impact of Covid-19 on the Automotive Industry in India

The examination questions are as per the following. To start with, what will be the impact
of COVID‐19 on the Indian economy and how can it influence the various areas of the
economy? Second, how does the pandemic influence the reciprocal exchange connection
among India and China? Third, we question the part of the general wellbeing framework in
managing the episode of the infection in India. This article likewise presents the development
projection of the Indian economy by various monetary specialists. We at last finish up the article
by referencing a couple of strategy proposals for the Indian economy.
Belhadi (2021) states that there has been an expanded revenue among researchers to
examine store network flexibility (SCRes) in assembling and administration activities during
arising circumstances. Grounded in the SCRes hypothesis, this investigation gives experiences
into the effect of the COVID-19 episode on the auto and aircraft inventory network. Both the
short and long haul reaction procedures received by the two stockpile chains are evaluated,
utilizing a mix of subjective and quantitative methods in three unmistakable stages. In stage
one, we utilize a consecutive blended technique for versatility assessment, coordinating Time-
to-Recovery (TTR) and Financial Impact (FI) examination.
In stage two, we direct an exact overview including 145 firms to assess the momentary
SCRes reaction techniques. In the third stage, we direct semi-organized meetings with
production network heads both from the vehicle and carrier enterprises to comprehend the
drawn out SCRes reaction procedures. Our discoveries demonstrate that: the auto business saw
that the best methodologies to moderate dangers identified with COVID-19, were to create
confined stock sources and utilize progressed industry 4.0 (I4.0) innovations. The carrier
business then again, saw that the quick need was to prepare for business congruity challenges
presented by COVID-19, by characterizing their tasks both at the air terminals and inside the
flights. Importantly, both the areas saw Big Data Analytics (BDA) to assume a critical part by
giving ongoing data on different store network exercises to conquer the difficulties presented
by COVID-19. Cooperation among inventory network partners is seen, depending on the
situation to defeat the difficulties of the pandemic, and to speed up the utilization of advanced
advances.
Arribas (2021) brings in the point of advancement biological systems develop and adjust to
emergencies, however what are the variables that animate environment development
disregarding desperate conditions? We study the strenuous way ahead of the electric vehicle
(EV) environment and investigate top to bottom those elements that impact biological system
development as a rule and during the pandemic specifically. For the EV environment,
development suggests outcompeting the less practical interior burning motor (ICE) vehicles,
accordingly accomplishing a progress towards feasible transportation. New portability designs
give an essential chance to such a shift to green versatility and for EV biological system
development. For advancement biological systems as a rule, we propose that an emergency can
fill in as a chance for new developments to get through by upsetting earlier standards of conduct.
For the EV environment specifically, it stays not yet clear if the biological system will actually
want to profit by the chance given by the tragic interruption created by the pandemic.
Kumar (2020) asserts that development of auto industry assumes a critical part in the Indian
Economy. An unnatural weather change and expanded contamination levels power all nations
to return to their natural strategies towards accomplishing supportability. In this view, the auto
business is feeling the squeeze from the two clients and government for feasible turn of events.
Thusly, Indian vehicle industry centers on business improvement through productivity upgrade
just as ecological advancement through feasible lean assembling. Basic achievement factors
(CSFs) for manageable lean assembling are distinguished from existing writing, and specialists'
direction has been considered to complete the between connection between CSFs in reasonable
lean assembling execution utilizing Interpretive Structural Modeling (ISM) strategy. Top

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 Gaddipati Raama Haneesh and Abhishek Venkteshwar

administration distinguished as the compelling CSFs, which help in execution of SLM and
driving other CSFs. Driving and ward factors are additionally summed up in an Indian car
industry point of view. The consequence of examination dependent on information assortment
from little, medium-and enormous scope vehicle areas.
It has been dissected before that economical assembling (lean and green practices) conveys
unrivaled outcomes. Henceforth, the car business needs to embrace manageable lean
assembling for accomplishing economy, social and natural development. Lean assembling.
Basic achievement factors (CSFs) for practical lean assembling are recognized from existing
writing, and specialists' direction has been considered to do the between connection between
CSFs in supportable lean assembling execution utilizing Interpretive Structural Modeling
(ISM) technique. Top administration recognized as the compelling CSFs, which help in
execution of SLM and driving other CSFs. Driving and ward factors are likewise summed up
in an Indian car industry viewpoint. The aftereffect of exploration dependent on information
assortment from little, medium-and enormous scope vehicle areas. It has been broke down
before that reasonable assembling (lean and green practices) conveys unrivaled outcomes.
Henceforth, the vehicle business needs to receive feasible lean assembling for accomplishing
economy, social and natural development.
Guru (2020) puts up this investigation endeavors to introduce the reasons characterizing the
relationship building measure between providers what's more, clients in the car market, in light
of the extent of the purchaser merchant connections. The aftereffects of the audit of a few
articles and the elements which influence the ties between vehicle producers and providers
permit one to comprehend the level of fulfillment of the relations between the accomplices. We
show various reasons that relationship satisfaction adds to relationship support. New kinds of
ties between vehicle makes and their sellers have finished in a regulatory vehicle parts supply
framework. Nonetheless, it was noticed that the organization depends on the shared activities
of the accomplice, on data and innovation trade and on the experience of the connection
between the dealer and the client. Connections are today like the highlights of a helpful model
with long haul and commonly subordinate relations. The association can't be considered as
simply helpful or on the other hand serious. There has additionally been an endeavor to
characterize center issues and the bearing of likely investigation.
Chowdhury (2020) propounds that the paper endeavors to distinguish the most impacting
factors deciding car industry development in India. The paper considers a 19-year time span
from 1998 to 2016 for 12 firms having a place with the car business in India. The SCP model
is utilized as a system for analyzing the presentation of the vehicle business. Dissimilar to, the
past examinations that are generally time-arrangement or cross-sectional investigation, the
current examination utilizes board information investigation to quantify the effect of chosen
determinants on car industry development. The paper finds that work and capital profitability,
limited time measures, import force, fixed resource turnover, net overall revenue and age of the
firm as critical determinants of vehicle industry development in India. Further, the discoveries
help to legitimize the effect of modern arrangements on the development of the business during
this time.

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 The Impact of Covid-19 on the Automotive Industry in India

3. CONCEPTUAL MODEL
AUTOMOBILE SECTOR LOSS-1.5 to 2 Billion Dollars every month

Figure 1

4. DISCUSSION
The start of Covid-19 in India had conflictingly influenced the auto business. It is evaluated
that there will be an overall pay impact of at any rate $1.5 - 2.0 billion consistently across the
business. Even after we open up, further diminishing in explorer vehicles demand is ordinary
with discretionary spend accepting a lower need. This will be joined with change to BS-VI
principles that will assemble cost of ownership. Covid has brought in an extreme of both
negative and positive impacts into the automotive industry, the industry did procure a lot in
losses but equally did get chances in exploring into renewable energies. And the concept of
circular economy wasn’t achieved to its fullest potential.

5. CONCLUSION
Client perception is an essential factor that build up or breaks down any brand. Nowadays,
client perception is changing rapidly and this has to be taken care of as it affects any industry
significantly. The study has established that the customers in present day situation is focused
more towards savings rather than spending. It also states that the impact is directly proportional
to the thought process on the spending power of the people in tough times of Covid. Hence it’s
now the responsibility of the automakers and the government to stabilize the lost industry and
get them back on track. The government can support in a numerous ways to the automakers and
help them maintain the industry if not to the top but to survive. A lot of families are dependent
on this industry and that is directly proportional for their living standards to be stable or
deteriorate.

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 Gaddipati Raama Haneesh and Abhishek Venkteshwar

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