Strategies for Indian Automotive Industry to Normalize Business After Coronavirus Pandemic

India is under 21 days lockdown to control the spread of COVID-19 as per the order by PM Narendra Modi’s government. Almost all shops, service sectors, markets, and companies in India are closed except essential providers. Most of the Tech giants are working from home to avoid the financial loss. But heavy sectors such as transportation, aerospace, automotive, and manufacturing are facing a huge loss.

It is going to be more challenging to restart production than shutting them down. It will require a thoughtful approach to normalize the business. This article provides the tips to India's automotive Industry to stabilize their business once this crisis will be under control and economy will start to limp back.

Know the Market Scenario and Take the Decision Based on Available Data

Right now, no one can predict that how this pandemic will impact the automotive industry. So, it will become necessary to understand the market scenario and collect data of available parts, demands and pending supply of the vehicles, and workforce. Also, vehicle manufacturing companies must monitor their global/domestic supplier for the check the readiness of parts.

Focus on Reconstructing the Existing Business, Ignore EV Projects for Some Time

As every country will be focusing on solving their economic issues, Indian automakers may not get help from electric-mobility-tech countries. So, owners must plan and spend money on reconstruction of the existing business and avoid spending on EV project for next few months.

Adoption of Online Selling

The industry has left behind in terms of digitalization. As the demand through traditional dealership is reducing, automakers have started looking for digital solution. In the future, to stimulate sales, it will become essential for companies to avail online shopping option using various technologies like AI, ML, virtual reality and live broadcasts etc.

Depend on Made in India Components

This pandemic has revealed that the Indian automotive industry is highly dependent on China for components and if the supply of these component stops, production in India will also stop. So, this crisis indicates that imports of these materials must not continue anymore and it has become high time to look at more locally manufactured components, modules, and technologies. It will less time consuming and help to reduce the supply chain risks.

Focus more on Branding than Sales

Automakers must realise the power and need of focusing on the brands than sales promotions and discounts. They will also need to plan and implement the proper formal and structured brand management functions.