Like the rest of the world, the Indian automobile industry has been shaken by the Corona. At Lockdown 1.0, vehicle sales plummeted to an all-time high as people were forced to stay indoors. Festivals coming up at the end of the year, as expected, have revived vehicle sales from the slump. What challenges will the automobile world face in 2021?
2020 REWIND …
Make in India Electric Two-Wheelers!!
Although electric two-wheelers are already on sale in our country, they are mostly made in China. Although they were cheap, the overall quality was very modest. But to put an end to this trend, domestic manufacturers Bajaj (Chetak) and TVS (I-Cube) have launched their products in the electric scooter segment this year. Although both of these are currently available for sale only in Bangalore, it looks like a good start. Ether, which had already made its mark in this segment, introduced the advanced model 450X. Although it is expensive, it is notable for its design, technology, performance and quality.
Delhi Auto Expo 2020
In other parts of the world except India, it was a time when Corona was diverting its branches. As previously planned at that time, the Delhi Auto Expo 2020 was held in February. After a gap of a few years, the participation of the Volkswagen-Skoda Group has raised a lot of expectations among the people. But it is a big disappointment that international companies like Honda, Toyota, BMW, Audi, Fiat Chrysler Group are not attending this automobile festival. To make up for that, two new Chinese companies, Great Wall Motors & Haima, showcased their products to the people of our country. However, due to the border dispute between India and China, the arrival of Great Wall Motors in India is questionable. So far, the company had planned to invest Rs 7,600 crore in our country. The company has also acquired General Motors’ factory in Talegaon, Maharashtra. But what happens next remains a mystery.
Automotive production and sales decline!
The automobile sector, which has a significant share of India’s GDP, was forced by the Corona to stop its fast-moving wheels. At the peak of the impact, the number of new vehicles sold nationwide in April 2020 was zero. Despite the crisis in their trade, they made large sums of money to the Corona Fund. Accordingly, a wide variety of automakers, instead of manufacturing vehicles in their factories, understood the severity of the situation and produced ventilators and PPE kits.
BS-6 Rules Introduced!
In a short span of 4 years, the automakers have upgraded the engines fitted in their products to BS-6 rules. Thus, the air pollution caused by vehicles is at least on the one hand, and the price of diesel cars on the other hand has risen dramatically due to the compulsion to use new technologies. So, some companies like Maruti Suzuki, Volkswagen, Skoda, Renault, Nissan have stopped offering diesel engine in their new cars. As a result, turbo petrol engines have taken over the space. Due to the same BS-6 rules, the price of two-wheelers increased by 10-15%. As an alternative to the carburetor used in their engine, a fuel injection system was introduced.
New alliances emerging!
The Bajaj-Triumph alliance, which is expected by bike enthusiasts, has been officially announced. Its main purpose is to produce bikes ranging from 200 to 700 cc. And the highlight is that the first product of this alliance will come to around 2 lakh rupees. Bajaj is also expected to start distributing Triumph bikes across the country later. Classic Legends, a Mahindra-based company, plans to assemble BSA motorcycles in the UK. This includes gasoline and electric products.
TVS ‘acquisition of UK-based Norton is a proud moment. To Ola’s surprise, Ola bought Etergo, a Dutch EV startup! As an expression of this, they are planning to build a factory in Chennai with an investment of 2,400 crore rupees to produce 10 lakh two-wheelers a year. The reality is that Ola, who runs taxis, has already made a strong impact in the electric two-wheeler industry.
In the Bajaj-KTM, TVS-BMW lineup, the Hero-Harley Davidson alliance is born again. It was reported that the US company was leaving India due to low sales during the lockdown period. First of all, Hero is going to take over the sales & service division of Harley Davidson. Then at Harley Davidson’s factory in Haryana, these two companies are working together to make Mid Capacity bikes suitable for our country. So as planned, Harley-Davidson’s new products, the day the tires hit our factories, are not far off.
2021 … Will everything be alright?
The corona is not yet under human control, except that the corona still controls man. At the same time that vaccines for this have come into circulation, the new form of the corona has begun to spread from the UK. So, while the impact on the Indian automobile industry has eased a bit, the situation still needs a little improvement. By 2021, more than 75 new cars will have tires on Indian roads. No matter what the present tense looks like, there are signs that the future will be better.
TECHIE'S SCRIBBLING 