If one has to understand the chronology of the spread of the COVID-19 pandemic in India, one needs to just look at developments in the domestic automobile industry over the last two months. When reports of the first casualty came from China in mid-January, they were ignored. It was then just a local virus after all.
Things became serious when China's Wuhan province was quarantined and the World Health Organization (WHO) declared a public health emergency in late January. Then, the worry was more about the virus jeopardising the biennial Indian Auto Expo in early February. This year, there was a significant Chinese presence, but after contemplating a cancellation, the organisers took a chance, helped by the fact that no cases had been reported in India till then. While the gamble paid off, the first strain on business became evident as shipment of parts from China started getting impacted.
It has quickly gone downhill since then. With the virus gaining a firm foothold in the country, operations started getting impacted at the start of the month. The 21-day country lockdown that came into effect from March 25 was only the next logical step. Not only has the $120 billion industry, which accounts for 49 per cent of the country's manufacturing GDP, been brought to a grinding halt, the future is also very hazy. Battling a protracted near two-year slowdown in the domestic industry, the sector was hoping for a revival and sustainable growth from the second half of fiscal 2021. That is history now. In its latest report, research firm Crisil has said it does not foresee a recovery across the sector in FY2021.
This story is from the April 19, 2020 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 19, 2020 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Four Levers Of Enterprise AI Strategy
Wide-scale private sector AI deployment and new AI-based business opportunities and ecosystems can truly supercharge the Indian economy
"Don't let a unique chance slip by"
JEFF MAGGIONCALDA | CHIEF EXECUTIVE OFFICER | COURSERA
THE INCOMING DISRUPTION
The disruption in the industrial sector is still unknown, but inevitable. Companies need to wake up
THE WHEEL WHISPERER
For Manan Shah, Managing Director of MICL Group, luxury cars are not about showcasing one's wealth or status. It is about personal well-being
TRIPPING WITH TECH
A road trip is an adventure like no other. While you take in the experience, get some peace of mind with these nifty gadgets
Transforming Spaces
WHETHER YOU WANT TO REDECORATE YOUR BEDROOM OR HALLWAY, A GORGEOUS WALLPAPER ADDS FLAIR TO YOUR HOME AND ALLOWS YOU TO STAMP YOUR STYLE IN YOUR NEW ABODE
PMS VS MF THE BIG FIGHT
HOW DO MUTUAL FUNDS AND PORTFOLIO MANAGEMENT SERVICES MATCH UP? KNOW THE SCORE ON STRUCTURE, RULES, ENTRY FEES, CHARGES, AND TAX PERKS TO PICK THE RIGHT PATH FOR YOUR FINANCIAL JOURNEY
ALPHATALE
MONEY MANAGERS TO THE AFFLUENT DELIVERED ROBUST RETURNS TO INVESTORS IN THE PAST YEAR, THANKS TO THE BUOYANCY IN THE MARKETS. BUSINESS TODAY DECODES THEIR STRATEGY
"THE ALTERNATIVES SPACE CAN GROW 3X IN FIVE YEARS"
Vikaas M. Sachdeva, MD of Sundaram Alternates, talks about where India's alternative investment industry is headed
"ALWAYS BE DATA-DRIVEN WHILE INVESTING"
First Global's Founder and CMD Devina Mehra on her company's PMS outperformance, technology and industry