Major Events That Affected Auto Sector In 2021

The year 2021 has been a cautious one for the economy in general, as well as the automobile industry, recovering from the disruptions triggered by the COVID-19 pandemic. The auto sector's resilience was tested when the entire industry was brought to a standstill because of the nationwide lockdown in April 2020, in the midst of what was already an economic slowdown. Despite several unprecedented challenges, automakers embraced the new normal with an aim to rebound from the turmoil of 2020, and we saw the auto industry slowly getting back on track. Here are a few significant events that the Indian automotive sector witnessed this year.

COVID-19 Second Wave

Vehicle retails took a massive hit due to the near-total lockdown imposed in several states

Right when we were seeing signs of the auto industry slowly getting back on track, the nation was hit by the second wave of the coronavirus pandemic. Retail sales took a massive hit due to the near-total lockdown imposed in several states to curb the exponentially rising cases of COVID-19 across India.

Plant Closures

Maruti Suzuki advanced its annual maintenance shut down to May 2021.

Several automakers like Maruti Suzuki, Tata Motors and Hyundai Motor India temporarily halted production at their respective plants to carry out annual maintenance activities. The OEMs also supported the state-wide lockdown that was observed to break the chain of the pandemic, and free up industrial oxygen consumption for medical purposes. Most of the companies also reinstated work from home policy for the safety and well-being of their employees.

Ford's Exit From India

The decision by Ford came after it struggled for years to win over Indian consumers

Ford India shocked the Indian auto industry by announcing its decision to cease local vehicle manufacturing as a part of its major restructuring programme. With the automaker pulling the plug on local production, all made-in-India models like the Figo, Freestyle, Aspire, EcoSport and Endeavour have been discontinued. However, Ford continues to offer after-sales support for its cars, including service, aftermarket parts and warranty coverage.

Transition To EV

OEMs are introducing more and more EVs in the country.

Automakers are betting big on electrification, and there have been plenty of announcements about e-mobility this year. In June, Fiat announced that it aims to become an all-electric carmaker by 2030. Tata Motors-owned JLR also announced similar plans of making a shift towards an electrified future. JLR is targeting to become a net-zero carbon business by 2039 and making Jaguar an all-electric luxury brand from 2025. Several state governments also announced their EV policies to promote the usage of electric vehicles. OEMs are introducing more and more EVs in the country.

The MG Astor is the brand's first SUV to feature ADAS Level 2 Autonomous technology.

ADAS On Mainstream Cars

The penetration of the Advanced Driver Assistance System (ADAS), which is usually offered on luxury cars, is now becoming increasingly common on mainstream cars. The inclusion of ADAS features ensures the safety of the driver, passengers and pedestrians on the road. The MG Astor is the brand's first SUV to feature ADAS Level 2 Autonomous technology, while the Gloster SUV also gets Level 1 autonomous driving. Moreover, Mahindra's flagship SUV, the XUV700 is also an ADAS equipped model.