In a country where ‘Cash is the king’ , the automobile sector will naturally face a major challenge. Not only has the Covid -19 crisis impacted the economy in a big way, but it has also affected the whole psyche of people. Individuals, as well as enterprises, have gone in a cash saving mode. This fear of uncertainty will loom for a long time to come.

Having said that, the fear of this contagious disease will push people to own their own vehicles so that they can avoid public transport. Carpooling may also lose its charm in such precarious times. So how should an industry which requires heavy investments, capital and manpower survive the global economic downturn?

There are several measures the automobile industry can take to ensure it stays afloat.

1. Focus on selling smaller Cars:
With the cash crunch, people are less likely to invest in the more expensive price bracket. But since a lot of people will be looking to buy cars, two-box or hatchbacks will be the most sought after.

2. Promote Rentals:
Automobile companies can look at offering cars or two-wheelers on rent. This could be either in a subscription model or a lease model. This may work for enterprises as they can always choose as per their ever-changing requirements.

3. A two year no/ low EMI option :
The way real estate does it, automobiles may also benefit from offering to give cars away with no or low EMI option. This will give the end consumer much relief and may just make them buy a car in the more expensive price bracket as well.

4. Campaign for Used, Pre-owned Cars:
Not only are these cars cheaper, they also evoke the whole ‘reduce, reuse, recycle’ sentiment. With the world realizing how the human race has battered the environment, people may just be more receptive to the idea of owning a pre-owned car and that too, with pride!

5. Set up Online platforms for sale:
Everyone is avoiding going out or touching any surface. People are not going to throng car dealerships anytime soon. This is why, having a robust online presence and platform to give virtual tours of cars, certificate of authenticity or certificate of health ( preowned cars) will become vital.

Eventually, it is one industry that will have to recover. But in the near future, the industry and segment leaders are going to reap the benefit of years of relevant marketing communication, excellent product, and hard-earned customer satisfaction.