• 25-27 November 2021
  • Bombay Exhibition Centre (NESCO), WEH, Mumbai

Automobile sector in India flourishes amid pandemic-induced slowdown

Amid the raging pandemic, industries across sectors suffered major setback and slowdown. However, India’s automobile sector is emerging out of the aftermath of COVID-19 disruption and continuing on its path to becoming the third-largest automobile market. The pandemic has ravaged economies globally, nonetheless, many larger trends and patterns have paved way for recovery of auto sector in India.

Major market drivers and trends fostering growth of the automobile sector

1. Increase in adoption of personal vehicles: The world has gradually adapted to survive the onslaught of pandemic. One of the major trend being witnessed is change in the preferred mode of commute among passengers, with 56% of people choosing to use a personal vehicle over a public or shared transport, according to a survey. This increased preference for personal mobility vehicles is expected to drive vehicle demand in the post-COVID world.

2. Rising demand for compact and mid-size SUVs to gain: In the last five fiscal years, SUVs have garnered a significant share in the personal cars market in India. Compact and mid-sized SUV segments have gained strength in Indian market as they are better aligned with consumer demands and road conditions. With the arrival of new players and new models being launched in the coming years the SUV segment is going to grow rapidly. The mid-size SUV has seen the fastest recovery post-COVID after bottoming up in April 2020 with a YoY growth rate of 37% in September 2020.

3. In addition, with increase in investments, policies and developments, it is anticipated that the auto sector is going to grow at a faster rate. As per reports, recently, MG Motors has announced its interest in investing Rs. 1,000 crore to launch new models and expand operations. Additionally, in September 2020, Toyota Kirloskar Motors made investments of over Rs 2,000 crore in India directed towards electric components and technology for domestic customers and exports.

The growth in the auto sector is going to drive demand metal cutting tools in the country. Capitalise on this growth by being a part of Blech India 2021-India’s premier exhibition on sheet metal working.

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