Covid Impact on Automobile Sector

The outbreak of COVID-19 has pushed the global economy and humanity into disaster. In the plan to control this pandemic, the governments of all the countries have imposed a nationwide lockdown. Although the lockdown has assisted in limiting the spread of the disease, it has brutally affected the country, unsettling the complete value-chains of the most important industries throughout the world. The Pandemic had a foremost impact on all features of industries which includes the automobile sector, with key manufacturers either completely close following the directions of local governments or running an organization with minimal staff at the manufacturing units to keep their personnel safe.

Over the last 18-20 months, the automobile field had already undergone significant delay due to structural modification openings with goods and services tax, axle-load reforms, shift to shared mobility, liquidity crunch, and so on industries had faced major effect and has roughly been at a complete idle since 24 March, 2020 due to COVID-19’s lockdown. Extended truncation of the customer demand due to lockdowns observed drastically distressing auto manufacturers. Most of the companies need the support of R&D (Research and development) to maintain their core functions and potentially get back the growth made on mobility technologies as well as alternate fuels. The automotive sector in Central and Eastern Europe and Asia has been severely hit. The Covid-19 pandemic exposed the worldwide automotive industry to an unprecedented shock. In Europe, the implementation of containment measures has caused production and demand disruptions to carmakers and their sub-contractors. In early 2020, the abrupt production stop rippled through the industry, effectively closing down the entire supply chain. Lifting of restrictions at a different speed across sectors and countries have resulted in input shortages in the sector’s complex value chains.