Impact of Covid-19 Pandemic on the New Two-Wheeler Fleet in India

Abstract

India is the 2nd largest two wheeler market in the world • It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively In 2013 , the Indian two-wheeler market accounted for 14.38 million units , CAGR (Compound Annual Growth Rate )(last three decade’s) is 10.03% . Average two-wheelers per 1000 people in India are 31 andthe urban market for two-wheelers is largely penetrated with nearly 57 of every 100 youths that earn an income to support the ownership of a two-wheeler. The Two-Wheeler industry's troubles began well before COVID-19 appeared on the scene. The Indian Two-Wheeler industry has been in trouble since mid-2018. The crisis started with a slowdown in production, which was aggravated by NBFC defaults. The auto industry has been hampered by a combination of demand and supply problems. The Pandemic majorly effected industries, including automotive sector. Need for social distancing and safety concerns are likely to shift the preference towards personal mobility in short to medium term, However, in medium to long term, the effect on personal choice of transport and PV sales are unlikely to see a large increase because of the following reasons: ‘Work from home’ trend to reduce movement for most white-collar professionals, Affordability of a four-wheeler is likely to be a constraint for majority of public transport users. Given the safety and The COVID‐19 epidemic has pushed the global economy and humanity into a disaster. In the attempt to control this pandemic, the governments of all the countries have imposed a nationwide lockdown. Although the lockdown may have assisted in limiting the spread of the disease, it has brutally affected the country, unsettling complete value‐chains of most important industries affordability concerns, two wheeler sales are likely to pick up. The global economic trade impact of pandemic on automotive industry is severe ,and Indian automotive sector will also get badly affected by it .This paper is a study of impact of Covid -19 pandemic on Indian two wheeler automotive sector and will suggest ways of overcoming this critical situation.