The Indian Automobile Sector Slowdown

8 Pages Posted: 28 Feb 2020

See all articles by Vijaya Kittu Manda

Vijaya Kittu Manda

Gandhi Institute of Technology and Management (GITAM), Institute of Management

Betsy Babu Beatrice

St. Aloysius College, Students

Date Written: January 30, 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

JEL Classification: L62, J60, H00

Suggested Citation

Manda, Vijaya Kittu and Beatrice, Betsy Babu, The Indian Automobile Sector Slowdown (January 30, 2020). Available at SSRN: https://ssrn.com/abstract=3528891 or http://dx.doi.org/10.2139/ssrn.3528891

Vijaya Kittu Manda (Contact Author)

Gandhi Institute of Technology and Management (GITAM), Institute of Management ( email )

Rushikonda
Gandhi Nagar
Visakhapatnam, 530045
India
+919849519188 (Phone)

Betsy Babu Beatrice

St. Aloysius College, Students ( email )

India

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