COVID 19 pandemic has thrown the Indian automotive industry to a state of shutdown. The unprecedented lockdown has emerged in a situation where the industry was scrambling to recover from the previous economic slowdown. The new pandemic challenge has created turbulence on vehicle sales and customers rush to the showrooms. As this is a challenging phase for almost all industries around the world, the Automotive Industry is looking forward to the Post-COVID period.
The post-COVID phase would be completely different, with massively blown economies attempting a comeback to normalcy. As daily passengers may avoid depending on public transport, the demand for own vehicles will see a spike. The buyers may opt to buy used or new cars that fit in their budget, thus raising the need for car loans as well.
Post-COVID Automotive Industry
The sales and operations of the industries post-pandemic phase will never be the same as it used to be. Indian Automotive Industry will take time to sail through the losses of the past few months. If not this year, the industries will start making a comeback in Fiscal Year 2021 or 2022. Consumer preference will shift to personal mobility as it will lessen the risk of shared transport. Also, there’ll be an increased demand for used vehicles in the coming months as some buyers may have an aversion to laying extra pressure on their wallets. The suppliers are also expected to face significant changes in its operations and finances. The global supply chain disruption may also create an impact on the Indian automotive industry. There’ll be reduced revenues during the first few months of sale restart. After the lockdown, the sales may take longer than expected as buyers will be doing thorough research on the safety and brand reliability of vehicles.
Demand for Car loans
With Social Distancing being the new normal, people would be reluctant to depend on public transport or shared vehicles. There will be concerns over health, hygiene, and cleanliness. As a solution for this, they will start looking for other options like buying their own vehicle. But the salary cuts and pay losses can put extra weight on their budget. Hence car loans would witness a spike. By understanding the customer needs, the lenders offer a wide range of loans for those who want to buy a car. Even the automakers are collaborating with banks to provide loans for the customers. The car loan interest rates may vary from bank to bank. But the monthly loan EMI can be calculated efficiently using a car loan EMI calculator.
The Indian Automotive Industries are facing the undercurrents of the pandemic at present. But if utilized well, this could be the time for them to prepare long term contingency plans for the comeback. As the vehicle demand is expected to bounce back in the coming months, it is vital to deploy the right strategies to attract customers and increase sales.