The Great Indian Automobile Industry

 


During July 2018 a change was asked of the automobile sector. A regulatory change in axle load norms. This was just a small change but even a small drop can cause a huge way (the butterfly effect) and it happened in this case. The idea was to use it to restrict the vehicle population in India and reduce emissions. Maybe it was the reason maybe it wasn’t but from this point, the downfall of the industry had started and nobody knew what’s gonna happen in the coming year.

A business cycle is something that is common to every sector. It begins with an Expansion (more products developed), Peak (the highest glass ceiling a sector can reach), Recession (sector stops expanding and falls to negative for at least 2 quarters) sometimes the cycle resets here or goes to Depression (sustained recession causing major downfall around the entire sector) Trough (the sector starts picking itself up again) and finally Recovery (back to the beginning and everything starts anew).

the Indian automobile will come back in 2020 with new Electric vehicle launches on the horizon and different addition to old classic to truly make them different and not just look wise is also a positive point. I know most of this post was just talking about what actually happened rather than what will happen but we need to understand what happened in order to figure out what will happen next. That’s why we have history subject too so that we learn from the mistakes of others and don’t let it happen again.

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