The Indian auto industry is expected to see stronger growth in 2021-22, after recovering from the devastating effects of the Covid-19 pandemic with electric vehicle sales — especially two-wheleers — also likely to see positive movements, according to Nomura Research Institute Consulting & Solutions India.
However, in the personal vehicles segment, the levels reached in 2018-19 would be reached only in 2022-23, it added.
In 2018-19, passenger vehicle sales rose 2.7 per cent to 33,77,436 units from 32,88,581 units in 2017-18, according to the Society of Indian Automobile Manufacturers (SIAM).
“After the devastating effects of the ovid-19 pandemic, it is expected that the auto industry will see stronger growth in 2021-22,” Ashim Sharma, partner and group head (business performance improvement consulting — auto, engineering and logistics) at NRI Consulting & Solutions India, said.
As far as personal vehicles are concerned, the 2018-19 levels would be reached only in 2022-23, whereas for two-wheelers, it will be achieved maybe a year after that, he added.
“This is also on account of some price hikes expected with introduction of new regulations,” Sharma said.
As far as electric vehicles (EVs) are concerned, Sharma said 2021-22 would also see positive movements, especially in the two-wheeler EV segment, with new players like Ola Electric getting into the fray.
“In addition, on the EV components side, we could finally see cell level manufacturing starting off in India with technological collaborations focusing on cutting-edge technologies such as LTO (lithium titanium oxide) batteries,” he said.