Auto Sector: Shifting Gears To Fast Lane, One At A Time

Auto contributes 50% to India’s total manufacturing GDPNifty Auto-TRI posted18% against 3.86% by Nifty TRI in the last one year *** The automobile industry, one of India’s most vibrant sectors that contributes about 50 per cent of the manufacturing GDP and 7.1 per cent to the overall GDP, has been on a roller coaster ride for the last four-five years. But it seems to be changing course in the last few quarters. Bumpy Past Following a period of huge expansion from 2010 to 2017, the industry saw a substantial downturn in demand from 2018 to 2020. In 2018, the industry experienced a slowdown in sales due to various factors, such as increasing insurance costs, ABS implementation, stringent safety norms, BS-VI emission norms, and high fuel prices. The industry was further hit by the Covid-19 pandemic in 2020, which led to a significant decline in sales and production. According...