With some sectors recovering much faster than others, experts said top executives of some companies may get decent salary increases while some others may have to take a pay cut.
Who gained, who lost? ETtech takes stock of the changing startup fortunes in a pandemic-marred year.
In the first half of the fiscal, ACMA said the turnover of the automotive components industry stood at Rs 1.19 lakh crore (USD 15.9 billion), registering a de-growth of 34 per cent as compared to Rs 1.82 lakh crore (USD 26.2 billion) in the first half of the previous fiscal.
Tesla's market capitalization surged above $600 billion, making the once wobbly startup founded by billionaire Elon Musk worth more than the five top-selling global vehicle making groups combined.
Parliamentary Standing Committee On Commerce, chaired by Telangana Rashtra Samithi (TRS) MP Keshav Rao, has suggested a slew of measures for attracting investment in the automotive sector in the country, including overhauling of prevalent land and labour laws.
India took 'very decisive' steps to deal with coronavirus pandemic and its economic consequences: IMF chief
The IMF Managing Director during a global media roundtable on Thursday predicted a less bad outlook for India in the upcoming World Economic Update due to the steps taken by it.
Governments have banned crackers as bursting these will lead to a spike in air pollution and that, with the winter air, could affect Covid patients. Besides, discouraging people from getting together to burst crackers would also help in controlling the spread of the infection.
Efforts being made to study impact of vaccines, diagnostics on UK variant of virus: DBT secy Renu Swarup
She said the Indian SARS-CoV-2 Genomic Consortia (INSACOG), formed to ascertain the status of new variants of the virus through genome sequencing, will also focus on samples from clusters where the infection level of coronavirus is high. "We are also making an effort now to study what is the impact of these vaccines and the diagnostics on this UK variant," Swarup told a press briefing.
The coronavirus pandemic has clearly established the role of private vehicles, edging out shared mobility in the process. Through a gradual recovery, the industry will get back to its original pre-Covid production by June 2021, say auto makers.
The news from the US biotech firm Moderna comes after similar results were announced last week for a vaccine candidate developed by pharma giant Pfizer and its German partner BioNTech.
China’s auto-parts industry is still gargantuan at $550 billion, against India’s $50 billion. But two recent trends suggest India can narrow this gap if the right initiatives are taken quickly. First, global automotive players and tier-1 suppliers are increasingly talking about the “China Plus One” model — a strategy to diversify geographically. Second, and more significantly, at least 30 international purchasing offices — offshore outfits that procure parts — have now become active in India, from 8-10 earlier.
The situation has led to cost overruns and loss of revenue for exporters. Executives ET spoke with estimate cost overruns in the component industry to be $1-1.5 billion (Rs 7,400-11,100 crore) a month in the quarter starting January, though some expect the situation to improve by the end of next month.
ILO has estimated that the impact of huge job losses worldwide is creating a fiscal gap that threatens to increase inequality between richer and poorer countries. It estimated that global labour income declined by 10.7 per cent, or $3.5 trillion, in the first three quarters of 2020, compared with the same period in 2019, excluding government income support.
The industry has asked that no new taxes be levied as the economy is under stress in its budget recommendations. Experts also opposed the idea, saying the timing wasn’t right.
Mandating vaccines would be especially important to help protect workers in minority.
CitiusTech expects to grow at more than 20%, in line with its ambition to cross $500 million in revenue over the next 4-5 years, CEO Rizwan Koita says.
Bajaj Auto manufactures vehicles for exports at a facility in the district’s Waluj industrial area. At present, 1,700-1,800 employees work at the Waluj factory where the company is operating at half the capacity in two shifts. It restarted operations at the plant on April 23.
With the supplier base of a majority of components in the Indian auto industry not diversified, the report -- Non-linear automotive supply chain - COVID-19 and Beyond -- said the impact of the global health crisis on the industry has been deep-rooted.
The future of Ford’s business in India is unclear as it has struggled for more than two decades to grow in the world’s fourth-largest auto market. “The company is actively evaluating its businesses around the world, including in India,” Ford said a statement.
If the initiative, aided by Gates’ fortune and focus, manages to help protect the world’s poor from a virus that has already killed more than 1.3 million people, it will affirm the strategies he has promoted in his philanthropic work, including incentives for drug companies.
Labour and employment lawyers said there has been an increase in VRS offers being rolled out by companies in the last few months after the Covid-19 outbreak to streamline operations amid lower capacity utilisation and a hit on demand.
Some of the auto and real estate ancillaries hold promise and valuation comfort., says Daljeet Singh Kohli.
Negotiating salary in normal times is stressful. It becomes even more stressful during pandemic times if you have been through salary cut or received a pink slip. Here is how you can talk to your manager about the revision of pay during the pandemic
The global chemical industry has been dealt a series of blows from closures related to Covid-19 pandemic, demand destruction and logistical challenges, the report said.
The semiconductor shortage came out of left field, hitting the industry at a perilous moment. Sales have plunged worldwide.
Automakers will need to build a connected car strategy that contains a differentiated customer experience at its core backed by technological innovation and data insights to cater to the new-age digital consumer, the consultancy firm said in its latest automotive report.
Domestic sales in July this year were at 1,58,976 units as against 2,05,470 units, down 23 per cent, Bajaj Auto said in a regulatory filing. Total motorcycle sales stood at 2,38,556 units, a decline of 26 per cent, as compared to 3,22,210 sold in July last year.
A sales and marketing strategy with focus on rural areas has helped automakers negotiate the challenges posed by the pandemic so far.
Because while the world has been dealing with the coronavirus, the dangers of global warming have continued to become more evident. From catastrophic cyclones and flooding in many parts of India to unprecedented heatwaves in Siberia and wildfires in vast areas of the western United States and Australia.
Javadekar who was speaking at the 60th Annual Convention of industry body Society of Indian Automobile Manufacturers (SIAM) said he will discuss the industry’s suggestion for a temporary reduction in GST with the Prime Minister and the Finance Minister.
"They proactively leveraged technology to reach out to consumers online, engaged them with digital marketing — to encourage purchases via self-owned and third-party e-commerce platforms. They also invested in post-purchase redressal systems in order to better serve consumers and resolve their issues,” it added.
Stressing on the need for reconsidering such a provision, ACMA President Deepak Jain said the Indian auto and component industry is a global one and the production not only caters to the domestic demand but also international markets.
Expect the unexpected, and expect the unexpected to be worse than the expected. Think of the concept of a financial stress test and check if your investments as well as your financial life (as well as life in general) can manage a bout of severe problems.
COVID-19 led to supply chain disruptions and production halt in the latter half of March 2020.
Having endured and managed to recover from the disruptions induced by a once-in-a-century event, the Indian auto sector is cautiously looking forward to 2021 with hopes of putting up a better show in the post-COVID-19 world, although a lot will hinge on how the economy grows.
The State not just makes policy — industrial policy, urban planning guidelines — but plans for the economy and regulates huge swathes of it. When governments set targets for net zero emissions, they embrace planning. From telecom to financial markets and potential abuse of market dominance, everything is regulated.
COVID-19 has put the focus back on personal vehicles, pushed out shared mobility, says Motherson Sumi chairman
Citing global experience of countries like China, Japan and South Korea, where there has been a spike in demand of personal vehicles when the countries re-opened after the COVID-19 induced restrictions, he exuded confidence that the conventional automotive industry has a bright future.
On Wednesday, Mercedes-Benz India drove in the Rs 1.2-crore GLE 55 AMG coupe, while Toyota launched the Urban Cruiser mini off-roader, or the re-stylised Maruti Suzuki Brezza.
Bajaj Auto experienced double digit growth but as you move down the pyramid and ride to the entry level, it goes into a decline, says Rakesh Sharma.
Manufacturing increased 0.9 per cent, its eighth straight monthly gain, even as production of motor vehicles and parts declined 1.6per cent.
The report noted an increase in Expected Credit Loss (ECL) allowance by 33% and an overall increase in provision coverage rate by 26% as at 31 March 2020 compared to the year ended 31 March 2019. The EY Study, , ‘Expected credit loss analysis for non-banking financial companies’ also shows that companies reported a COVID-19 impact comprising 19% of the ECL allowance as at 31 March 2020.
The production schedules for the ongoing fiscal Q4 are being revised downward by 15-20%, which could potentially mean a loss of over 1.5 lakh units in the January to March quarter for the industry.
Coronavirus lockdown took a massive toll on the wedding industry in Gujarat’s Vadodara. Marriage decorators are facing hardships to revive their businesses in market. They are suffering loss due to COVID-19 outbreak. There are 12,905 confirmed cases of coronavirus in Gujarat. According to the Ministry of Health and Family Welfare, the total number of COVID-19 active cases are 66,330 and 3583 deaths in India.Covid-19 impact: Lockdown takes toll on wedding industry in Vadodara
First up is the Ford-Mahindra JV. That’s already delayed by a quarter, while Tata Motors’ talks with a potential partner have hit the Covid bump. General Motors, which has exited India as a sales market, hasn’t yet been able to hand over its Talegaon facility to China's largest SUV maker Great Wall Motors.
The sector is learning, innovating and rising from disruptions to put the worst behind and looking forward to the new year with optimism and new-found confidence.
Syringe manufacturers are hopeful of meeting the demand arising out of the upcoming Covid vaccination programme, but a lack of clarity on the type of syringe needed and vaccine delivery dosage has put them in a quandary.
The metaphor is easy enough to grasp: Multiple layers of protection, imagined as cheese slices, block the spread of the new coronavirus, SARS-CoV-2, the virus that causes COVID-19. No one layer is perfect; each has holes, and when the holes align, the risk of infection increases.
"The crisis has shaken up the way we view the world and exposed the fault lines in our society. It has also emphasised the necessity for quick and relevant solutions for the new world that is rising from the ashes of the old," said Mahindra.
Market is now expecting a repeat of TCS from other major IT players, says Ajay Bagga.
The airline, operating at a capacity of 55% of pre-Covid level, says it will take a few more months to return to normalcy. IndiGo had to renegotiate with lessors and trim expenses.
Auto sector needs boosters like scrappage policy soon: JK Tyre & Industries Chairman Raghupati Singhania
India's automotive industry needs a series of boosters including an early announcement of the vehicle scrappage policy to come out of the slowdown, which was exacerbated by the coronavirus pandemic, JK Tyre & Industries chairman Raghupati Singhania said.
Below the age of 17 years, only 8% are Covid positive in India.
Airlines the world over have drastically cut back on flights due to border restrictions and a lack of appetite for travel, particularly internationally, because people are worried about contracting the virus and spending lengthy periods in quarantine.
The seeds of the emerging divergence have their roots in a major expansion in capacity in the UAE as well as an effort that is gathering pace for the country’s oil to become one of the few grades of crude used as a benchmark to price world supply.
The coronavirus pandemic dragged automobile sales in India to historically low levels. After registering zero sales in April, the industry is yet to recover to monthly sales levels seen before the pandemic. FY21 sales are estimated to be decadal lows. ICRA predicts sales to increase by double-digits in FY22 given this year's substantially low base.
The good tidings at the beginning have endured for Kia, which is having something of a dream run in India’s auto market, which such giants of the global auto industry as General Motors, Ford and Toyota have struggled to make a dent in.
Global trade ran into stormy waters in 2020. Indian exporting sector is hoping for a calmer 2021.
The IRDAI has received representations from the insurers for an exemption to all health insurance policies issued by insurers from the requirement to issue physical policy document and hard copy of proposal form
The residential property market in metros such as Bengaluru, Mumbai, Delhi, Pune and Chennai have witnessed an increasing number of young professionals vacating rented homes and paying-guest accommodation, or asking for rent relief. Many such tenants have moved to their hometowns or are in the process of doing so, with companies also extending the work-from-home option as there is no let-up in the pandemic situation.
The Nifty Auto index has fallen 26.9 per cent this year to date.
The phases of lockdown announced by the government witnessed a revenue shortfall of more than 60 per cent for the sector, creating an unprecedented crisis to the industry.
While addressing shareholders at the company's 68th annual general meeting (AGM), Bosch Ltd Chairman Bernhard Straub said the downtrend in the Indian automotive segment continues against the backdrop of cyclical and structural changes accompanied by added pressure of the COVID-19 pandemic uncertainties.
Indian auto industry facing one of the toughest times in history, needs govt support: Kenichi Ayukawa
The Indian auto industry is facing one of the toughest times in history and needs government support through reduction of GST and incentive-based scrappage policy, Maruti Suzuki India Managing Director and CEO Kenichi Ayukawa said.
"When you are looking at the manufacturing sector and the industrial sector, the growth essentially comes from an uptick in the spending, which is not happening," LIC Managing Director Vipin Anand says.
After communist rule ended three decades ago, the auto sector became an important source of foreign investment, employment and growth. But with car production hit by factories idling during coronavirus lockdowns, and many still not back at full throttle, the industry is expected to be worse hit by COVID-19 than many others in central Europe.
Daily new infections in the United States surpassed 163,000 on Thursday, crossing the 100,000 mark for a ninth consecutive day, and the death toll rose by 1,173 to a total of 242,982. Hospitals in some states are reaching capacity.
The domestic automotive industry is likely to witness a prolonged U-shape recovery.
Policymakers in India have acted swiftly and decisively on both fiscal and monetary fronts to cushion the impact. The slew of measures introduced over the last nine months have allowed banks to help the stressed and most impacted sectors of the economy to weather the shock effectively.
Industry leaders aren’t expecting much improvement in sales next month as well.
Leading developers like DLF, Emami Realty, ATS, Omaxe and Alpha Corp have shifted focus towards smaller cities to monetise the land banks they had held for long.
Signalling that during the pandemic, the creative industries continue to face a very uncertain future, the report shows that the creative economy is contracting, organisations are closing permanently to avoid bankruptcy, and creative businesses are contending with increasingly difficult choices to cut staff and overheads to ensure they remain resilient.
The trend in US auto employment has mirrored the larger dynamic in manufacturing jobs, rising throughout much of Trump's presidency, but falling off a cliff in the wake of the coronavirus pandemic.
Sales of sedans, SUVs and minivans rose to 1.7 million, according to the China Association of Automobile Manufacturers. Total vehicle sales, including trucks and buses, rose 11.6% to 2.2 million.
The company also believes that while vehicle sales have improved in July, the outlook for festive season will depend on how the health crisis pans out, and the long-term vehicle demand will also depend a lot on the fundamentals of the economy.
“Our customers are eagerly waiting for the January opening up of their plants and we are back in a big way.”
Commending Prime Minister Modi for how his government has countered the COVID-19 in one of the world's most affected and populated zones, Hasina said: "Apart from the health care packages, the economic packages introduced under your initiative of 'Atmanirbhar Bharat' is admirable."
The company, based in France, said Thursday that its deliveries fell almost 50 per cent to 196, with revenue sliding almost 40 per cent to 18.9 billion euros. It said it was further scaling back production of its A350 long-haul jet, from six a month to five, after trimming from nine a month in April.
Carmakers, phone firms are set to begin production with output less than the usual level.
Export orders worth $4-5 billion at stake, estimated revenue loss of over Rs 1 lakh crore and shortfall in the GST collection of about Rs 28,000 crore. Add to that loss of Rs 14,000 crore in other state levies. The 45-day coronavirus-induced factory shutdown has hit the automotive sector hard. ET's Nehal Chaliawala explains why India needs to keep the wheels of the industry - which amounts to 0.5% of the country's GDP - moving. Watch now.Coronavirus shutdown: Why auto industry needs to get its wheel spinning
Commerzbank, the biggest lender to Mittelstand firms, also told Reuters that the number of companies going into "intensive care" was lower than it had feared and there was no rush by its clients to get new credit lines.
Companies expect loss of about 750,000 units in production in March alone due to covid outbreak.
Covid created various operational and financial challenges for Indian businesses. During the lockdown, approximately 71.31% of the businesses dealt with reduced cash flows with the manufacturing sector being the worst hit. Additionally, delay and cancellation of projects have also been a major cause of concern, especially in the tertiary sectors.
The pandemic lockdown has not just spawned a wave of first-time authors - including celebrities who have a story to tell- but also encouraged many others to finally complete long-pending manuscripts.
Sales will witness growth next year, albeit on a lower base.
India’s automotive industry needs a series of boosters including an early announcement of the vehicle scrappage policy to come out of the slowdown, which was exacerbated by the coronavirus pandemic, JK Tyre & Industries chairman Raghupati Singhania said.
PUBG Mobile introduced millions of Indians to e-sports.
India has become the key foreign market for Zyfra with more than 500 CNC machines connected to its MDCplus real-time machine monitoring and manufacturing data collection system in 2019.
Indian economy saw a fall in its gross domestic product (GDP) in two consecutive quarters. The GDP contracted by 7.5% between July and September, compared to the same quarter a year before.
While releasing the wholesale numbers for December and the third quarter (October-December) of the current fiscal, the industry body said high levels of uncertainty remain in the industry due to COVID-19 situation and shortage of critical components like semiconductors.
Bajaj Auto brands like Pulsar, Avenger, Dominar, KTM and Husqvarna have grown very nicely whereas entry level brands like -- CT and Platina - have shown degrowth.
Digital payment volumes across channels such as the Unified Payments Interface (UPI), wallets and cards are set to shoot up by an additional 6 percentage points over the next two years against a base scenario without the virus outbreak, it said.
Boeing is cutting more than 12,000 jobs through layoffs and buyouts as the coronavirus pandemic seizes the travel industry, and more cuts are coming.Covid-19 impact: Boeing slashes 12,000 jobs as virus seizes travel industry
Automobile sales in India were weathering a slump before the coronavirus pandemic, with at least half a million jobs lost. A lobby group has predicted it may take as many as four years for sales to return to levels seen before the slowdown.
Based on assessments made by different analysts and industry body Ficci, here is an impact analysis in healthcare sector.
The Indian pharma industry has been a world leader in generics both globally and in domestic markets.
The Federation of Automobile Dealers Associations (FADA), which represents around 15,000 auto dealers across the country, in September advocated for the enactment of such a law in the country, after American cult bike manufacturer Harley Davidson announced its exit from India.
The industry, which accounts for around 2.3 per cent of the country's GDP, has been struggling of late due to a prolonged downturn in the auto industry as a whole and due to COVID-19 situation which has brought in supply chain issues and impacted productivity.
Vaccine producer Bharat Biotech International (BBIL) could begin phase I/II human clinical trials for its single-dose intranasal vaccine candidate for Covid-19 by the end of December or early next month, its chairman, Krishna Ella, said on Tuesday.
Pandemic is only the latest blow; the headwinds have been gathering for the industry for a while. In 2019-20, passenger vehicles sales dipped by 18%, from 3.2 million in 2018-19 to touch 2.78 million. The future looks grim — in 2020-21, CRISIL forecasts that passenger vehicle sales will dip by 25% to touch 2.1 million. In this plethora of bad news, pre-owned or used car market is emerging as a silver lining.
A number of themes will shape the course of the Indian economy through 2021 and beyond. These themes — investing, the future of work, the acceleration of digitisation, and the impact of the pandemic on contact-intensive.