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The Indian Automobile Sector Slowdown

Research Article

Authors: Vijaya Kittu Manda & Betsy Babu Beatrice

Publisher: SSRN

Publication Date: 2020

Abstract: The Automobile sector is an important pillar of the Indian Economy. Being a major contributor to GDP, and a big job creator facing a slowdown, the crisis in the Indian automobile sector has far-fetching consequences. This research study examines the reason leading to the decline in automobile sales with specific reference to Indian automobile companies from a two-wheeler, passenger, and commercial vehicles. An overall economic slowdown, liquidity issues, weak consumer demand, disruptive entry of new players are observed to be the prime factors forcing automobile companies to declare plant non-working days, employee wage cuts and even retrenchments, delaying expansion plans and technology upgrades apart from being pushed into a deep financial crunch. Findings and recommendations from this research can strengthen our understanding of the issues surrounding the sector and can potentially help companies to find a way out of the crisis.

Keywords: Ashok Leyland, Maruti Suzuki, Hero MotoCorp, MG Motors, Tata Motors, Jaguar Land Rover

DOI: https://dx.doi.org/10.2139/ssrn.3528891

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