Slowdown expected in Q3/Q4 as all manufacturing is stalled and most giants are dependent on imports from China (for auto components).

Maruti Suzuki, Hyundai, TATA Motors and MG Motors saw a decline of 1.9%, 7.2%, 33%, and 56% respectively.

Footfalls in dealerships have gone down 45% by the mid-March. This has led to a 70% decline in sales.

Post lockdown the sales of Private Vehicles declined by 52% in March. Many companies have deferred launches to end of 2020.

Source: Economic Times, February 2020; Federation of Automobile Dealers Association, 2020.


Social distancing may affect the way we commute.

Those who can, may not use public or shared transport at all.

Those who cannot, may restrict their movement. For example, they may use public transport only 2-3 times a week.

More and more people may want to use their own mode of transportation. People may want to buy their own car so that they can travel alone and specially with family.

The industry could see some movement in the coming days.

People who had planned their purchases for the year end phase (Navratra, Diwali , EOY discounts) may want to pre-pone it.

But there could be a catch. They might not want to spend as much due to financial impact and therefore may look at a cheaper alternate.


Affordability and Sustainability may form two ends of the spectrum.

While the truth of 2020 is that people may be willing to spend less owing to lesser discretionary incomes, but they may also be faced with the dilemma of keeping themselves and their families safe and for the more evolved buyer, keeping the environment safe. This might create need states at different levels of the income pyramid.

Small, mid-segment and pre-owned car market can be the trigger.

Industry could see rise in demand for small and mid size cars (for sedans and UVs).

Pre-owned market may see a rise as many may buy a car, not out of choice but necessity. Readily available to meet immediate requirements.

With less than 25% organized player in the market, companies could look at investing in their pre-owned dealerships or collaborate with players like OLXcashmycar & CARS 24.

Sustainability, tech upgrades to drive the upper auto segments.

Consumers would want to invest in hybrid cars rather than luxury-conscious decisions for environment friendly choices.

Government might start giving a push to EVs with new policies coming in.

Tech enabled cars may play a role and not just limited to AI. For example cars with pre-installed purifiers or disinfectors might be a good way to lure customers and bring a positive change.