Automobile sector in India

Indian Automobile industry has always been reinventing itself to find new ways of
creating and delivering value to the end users. India is becoming a priority market for
foreign auto companies and Indian companies are globalizing thereby ranking it 4 th
largest automotive industry in the world.

The transition from BS IV to BD VI vehicles has incurred huge losses to Indian

Automotive industry. In the year 2016, the Government of India decided to skip BS V
norms and directly shift from BS IV to BS VI by April 2020. Supreme Court’s order has
been mandated now to strictly follow BS VI norms in vehicles.

We have also seen a spurt increase in the sale of Electric Vehicles which are the future of
transportation in India. It is said that by 2030, the Electric Vehicles will be a
mainstream in the Indian market and Indian streets, just like the Oil Vehicles.

Recently, there has been a growth in Indian Automobile Industry coming from 2-
Wheeler based companies such as Rapedo. The current market size of Rapedo is
estimated $150 Million. They are in great demand in tier-1 and tier-2 cities due to the
economical rates, improved connectivity and easy convenience.

Impact of Coronavirus
 India’s major export markets severely hit. Export of USD 9 billion worth of
vehicles and components to North America and Europe are stalled. Approx. 31%
of Cars are exported to North America & Europe and 60% of components are
exported to these same countries.
 Manufacturers witnessed a decline in vehicle sales due to coronavirus lockdown
and BS6 transition in March and April. There has been a huge supply chain
disruption in the economy and production of auto vehicles are stopped.
 From a popular report, it is estimated that vehicle production in India will
decrease by 8.3 % in the current year.
 Coronavirus will make the transfer of vehicle to BS6 emission standards tough.