Even as reports of a 3rd wave of the COVID-19 pandemic looms ahead, automakers want to make good their losses sustained during the earlier two waves
The automotive sector, like every other sector in India has withstood many predicaments over the past one and a half years ever since the COVID-19 pandemic struck in March 2020. Even prior to this setback, the auto industry had been noting lower sales, but its strong resilience has stood the test of time and allowed the industry to make a comeback.
Automakers in India had to face sever difficulties with plants and showrooms shut during a major part of the past 18 months. This not only affected production and sales but resulted in the loss of many jobs lost. Now set to return to normal, automakers in the country are set to boost production to make good losses sustained and estimates put passenger vehicle production at 1 million (10 lakh) units during the July-Sept 2021 period.
This target, is provided there is no 3rd wave of the pandemic as is a threat hanging over our heads and which has been predicted by leading experts in the field. As per SIAM data, overall vehicle production in May 21 dipped by 57 percent to 8,06,755 units as against 18,75,698 units produced in April 21.
Top 3 Car Makers Production To Peak
Taking the country’s leading automaker into account, Maruti Suzuki India Limited plans to boost production to its highest level in July 21. The company plans to produce a total of 1.98 lakh units in the coming month. Hyundai Motors target is set at 60,000 units for July while Tata Motors has scheduled production of PVs at 30,000 units. Taking production of these three leading automakers, alone, production should reach 3 lakh units – reports ET Auto.
Mahindra is another automaker that is reviewing demand and supply and planning increased production operations with all safety precautions in place. Kia India is also planning to add a third shift to their Anantapur facility while Audi India is ramping up production at its Aurangabad plant from where the Audi A4 and A6 are produced.
Total car production for July 2021 could most likely cross the 3.5 lakh mark or even the recent high of 3.64 lakh units, which was set in Jan 2019. The rebound of the automotive sector and plans for increased production, comes at a time when many states across the country are opening up following the lockdown. Demand could see some increase in view of the steady drop in infections, the ongoing vaccination drive and preference for more personal means of travel.
Production Up – Waiting Down
Automakers are keen to recoup some of the losses incurred during the numerous lockdowns and be better prepared to meet this increased demand. Long waiting periods being faced by buyers and lower inventory at company dealerships is another reason why automakers wish to boost production.
On the same lines as passenger vehicle makers, two wheeler manufacturers in India and auto component manufacturers are also preparing to meet this predicted increased demand. Two wheeler makers will boost production while auto component makers will also support manufacturers with a promise timely supply of spares even as the supply of semi-conductors could continue for some time.