The second wave of the COVID-19 pandemic has been one of the most challenging humanitarian crises ever. Economies and industry supply chains across the globe witnessed severe disruptions and the Indian automotive industry was no exception. The vehicle industry in India witnessed two successive years of de-growth – of 14.6% in FY20 and thereafter, of 13.6% in FY21. A sluggish economy accompanied by a cyclical downturn in several segments had adversely impacted the industry.
The pandemic further posed a number of challenges to the overall economy. The auto component industry, in tandem with the vehicle industry, reported a subdued performance in FY21, with de-growth of 3% over the previous year, registering a turnover of INR 3.4 lakh crore (USD 45.9 billion).The automotive value chain faced significant disruptions in FY21 with operations being adversely impacted by the first and second wave of COVID-19. Despite such a volatile environment, the industry displayed great resolve. The automotive component industry supported OEMs well by ensuring a smooth ramp-up and business continuity.