I see a debate going around on the Automobile sector slowdown, and now it is necessary to acknowledge some facts. The situation we see today could be a problem for Automobile players, but the same may be a good thing for the people at large.
Decoding the Indian Auto sector slowdown
There is always a period in every economy where you see an economic class rising from the depths. A significant rise in lifestyle that fuels economic activities, India has been passing through this time. India is a country when the 99% of people are conscious about small financial management.
What do you mean? – All I am saying is to understand the consumer mindset.
Here, people don’t purchase anything unless there is a need. The people don’t purchase vehicles every year. If you relaunch the same model with new colours that won’t attract anyone. If a consumer spends 5-7 lacs in a car she/he would not make another purchase for next 4-5 years on average.
The Indian auto sector was thriving when an economic section of people was going through transformation, then there was a supply shortage. There was a time where people used to wait to get deliver of their vehicles, even some were ready to pay extra amount to get faster delivery. As a result, Auto makers increased their manufacturing capacity. Now, the supply has increased but the demand is on lower side.
How can you blame public transport for the Indian auto sector slowdown?
First, we should acknowledge that the public transportation is much better today. It’s not just limited to mega cities like Mumbai, Delhi. As I have mentioned earlier, a large population care more about their wallet’s health. A journey through Metro/local rail or BRTS corridor is time saving & cost effective. An individual would pay less and reach on time, because traffic is not an issue for Metro rail or BRTS corridors. In addition, private players are also betting on the Indian transportation section. You will see private Cabs like Uber, Ola on the streets of your city.
What about heavy vehicles? – I’m coming to that part.
Modi government has been continuously pushing for new ways for goods transportation whether it’s about new sea ports, increasing existing capacity, river linking projects that all come into the picture. Today, transportation is not just limited to highways.
Imagine a hundred people travel every day from city_A to city_B. A half travel on land, and the rest on air. Now, if cruise service is available some would use that option too!!
Above situation may cause some slowdown on road transportation, but that is not necessarily due to economic slowdown, the number of travelers remains same only the way of travel has changed.
Can Indian automobile industry survive this slowdown?
However, people should be able to charge their vehicle at home. Images if you can charge your vehicle at home, you won’t mind to have a solar rooftop at your home. Not only you get free electricity for your home, but also use the solar generated electricity for daily transportation. This will change the lives of common people in India.
The Future is Electric
The commuter prefer public transport due to its affordability. Electric vehicles can provide luxury, comfort at a very low fuel cost. Therefore, we are about to witness EV revoution in India.
Hello to all, the contents existing at this site are genuinely awesome for people knowledge, well,
keep up the good work fellows.
This is really interesting, You’re a very skilled blogger.
I’ve joined your rss feed and look forward to seeking more of your excellent post.