1.

Takeaways
Mention the key takeaways (as three bullet points at the beginning of the report)

Intro (200 words)

Address why the firm you selected is critical for understanding the impact of the COVID-19
Pandemic.

2. Introduction:

The automobile industry contributes 7.5% to India’s GDP and Tata motors is one of the
leading manufacturers of automobiles. Covid - 19 pandemic has affected this sector and
Tata motors adversely. Tata motors provides employment to around 75000 people and the
pandemic has affected the company and its employees due to fluctuations in the market.
Due to the pandemic, borders were sealed and this impacted the imports of parts from China
and other countries negatively which disrupted the supply chains and overall market.
The Covid - 19 pandemic had brought with it immense challenges. This caused
unemployment and a reduction in the income levels of consumers. This led to a change in
the buying preference of consumers against the products of Tata motors. Lower demand
and decreased sales contributed to a decline in the profit margins of the company. Because
of the current situation, the fuel prices are rising which is causing uncertainties in the future
demands of personal vehicles. With the long legacy and contribution of Tata motors to the
Indian economy and the unfavourable conditions, it is critical to understand the impact of
Covid - 19 pandemic on the company and the economy as a whole. 

Write a brief outline of the topic that you have selected. The focus of this section should be
on the business operations of the chosen firm, emphasizing the key issues you are
analysing and the relevant concepts that you have applied for the same. 
Suggested number of words: 500

3. Background: 

The company chosen is TATA Motors and the focus is to analyse the company’s challenges
and opportunities in the COVID scenario using various economic concepts. Tata motors
operates in the automotive sector and is India’s largest heavy commercial vehicle
manufacturer. It has a diversified portfolio of vehicles ranging from affordable cars like
TATA Nano to premium luxury cars like TATA Harrier and also produces other vehicles like
trucks, vans, coaches, buses, luxury cars, sports cars, construction equipment. It has also
entered the EV segment which has a lot of potential in the upcoming years. It has
manufacturing plants in India and all over the world and also imports some auto parts from
China, Korea etc.
The pandemic has caused hurdles in the smooth progress and growth of Tata Motors. This
has led to the company facing a lot of issues like imbalances in demand and supply due to
decreasing income levels of consumers, disturbance in supply chain network, rising prices of
complementary goods, high competition etc. To analyse these issues, certain economic
concepts have been applied like law of demand and supply, elasticity, firm theory and
market structure, production and cost etc.

Write in brief your observation about the current state of affairs of the organization, with
special
emphasis on how the COVID-19 pandemic has altered the business dynamics of the firm.
Include a brief introduction of the organization studied. The focus of this section should be to
highlight the key issues and concerns of the organization in particular and the relevant sector
in general, with special emphasis on the differences in the state of affairs of the chosen entity
during the two waves of the pandemic.

4. The State of Affairs:

Tata motors being one of the top 3 manufacturers of automotive in India has a vast global
presence, has penetrated in diverse markets and is positioned well to bring in revolutionary
changes to meet the changing demands of consumers by following the industry trends and
sustainable business practices. However, the Covid 19 pandemic altered the business
dynamics of the firm. In India, the demand in automotive sector was already declining due to
the economic slowdown, lockdown due to Covid further added to the difficulties of the
company to meet the ends meet. It saw a decline in the retail sales and net revenue by more
than 30%. The company ran into losses in FY20 which stood at 7127 cr.

Automotive Sector:
The automobile sector was adversely affected in the first wave with the already existing
economic slowdown. The situation worsened in the 2nd wave with extended lockdown, lesser
need of transportation, work from home policies and social distancing. Also, the loss in
revenues impacted the employment growth in the sector. The sales in the sector were near a
washout in May 2021 and many dealers and auto plants were forced to shut down the
operations.

Differences in the state of affairs during the two waves of the pandemic: