The contemporary world of today has snatched the opportunities from various Industries by jeopardizing their growth potential and have left them stranded. Despite all the hurdles that are drawing the progress of the Auto industry sector to the negative curve, but one forecast has really created a ray of hope as it predicts a fantastic potential for expansion of the Indian Auto sector in the 3rd Quarter of 2022. The current scenario for the Auto industry isn’t encouraging as the pandemic has posed a great threat to its expansion, yet customers have shown their interest in procuring three-wheeler, two-wheeler, four-wheeler, Trucks, and Bus.
The upcoming months in the years 2020 and 2021 would open new avenues of growth for the Auto sector and at the same, it will be equally tough for it to cope up with the existing market. These challenges will not only be limited to this sector alone but will also trouble the New investors, Employees, Transporters, Dealers, Advertising agencies, suppliers, and a lot of other domains.
In case there is a sharp diminish of the contagious COVID in the 1st quarter of FY 2022, then this would result in bringing about a growth anywhere less than 10% in the 2nd quarter. The anticipated GDP for the FY 2022 stands within 9 to 11%. In fact, the Inflammation and the price slash from the OEMs would orchestrate to cause certain hindrance for the sales of Automobiles and certain procurer related products. The paramount thing that needs to be observed from the initial Pandemic days is that it did not cause much damage to the Village population of the nation, and this, in turn, resulted in boosting the sales for the Auto sector across those regions. However, the present situation is contrary to the previous as the current wave has sent Shockwaves across the nation and would cause major damage to this sector in FY 2022. There seems to be no end to the misery of the Auto sector as the Government’s decision to halt production at the manufacturing units, Shutting down showrooms across India are likely to hit the market even more. The analytics and the data have showcased a very soaring start to the 1st quarter of 2022 and it would need to fight out the fallout in demand and the depreciating economic conditions. The key facts from the history of the Auto sector market have revealed that April month offers very little scope for sales and we can further deduce that this would recur in 2022 thus hitting the all-time low. Besides the Fuel costs are on the rampant rise in recent days, this would surely make the end-users think twice before opting for an Automobile.
The competition from other sectors will also bring cause a big hurdle for the Auto Sector, as the OEMs are having an eye on Market expansion by releasing a wide range of units.
When we take a look at the FY 2021, the sharp fallout in sales figures is very evident. Sales pertaining to Indigenous Automobile diminished by 13.6%, whereas the production and export value witnessed a backslash by 14 and 13% respectively.
Indian accounted for the manufacture of about 23 million automobiles, out of which 22 million units were marketed and procured by Indians, and the remaining 30 lakhs were sent to other nations owing to the sales demand.
The statistics of the last decade i.e from FY 2013 to FY 2021 haven’t been a fruitful outing for Auto. The Compound Annual Growth Rate of Indian market stood at just 0.5%, the Indian commercial vehicle segment too had a sluggish journey as the sales figure dipped to negative and was at an all-time low of -4%, Passenger vehicle sector and two-wheeler too failed to capitalize the Market as it just amassed a growth of 1%, the Three-wheeler segment, however, had a disastrous decade as the figure went well past zero and stood at -9%.
The FY 2020 which was unanimously declared as the worst nightmare for the Auto sector growth has also created few infamous records for itself. The sales figure of 2020 is the lowest in the entire decade, and the units sold during this year are equivalent to just 50 percent of the annual sales of FY 2019. However, as the saying goes that ‘every cloud has a silver lining’ the 2 wheeler sector alone scaled up its growth to an amazing level when compared to the last decade.
In the 21st century, Transportation has acquired an Integral status, and the COVID disease led the customer to rethink the convenience of travel and many even made their mind to own a personal 4 wheeler of their own to ensure a safe journey.