As India battles its worst pandemic crisis, there has been a massive toll on the economy. The automotive industry, in particular, has taken a hit. On the Dialogue Now Podcast, Divya Gupta, Founder and CEO of Dialogue Room got candid with Jayant Davar, Co-Chairman and Managing Director of Sandhar Technologies Ltd. Jayant sheds light on how the automotive industry should bounce back post the COVID-19 lockdown and more.
“Entrepreneurs are like elephants; we can slow down but not stop.”
What is the current scenario of your business?
90% of Sandhar Technologies’ business has currently stopped. Recently, they opened up some of their plants in India, working to a capacity of less than 10%, and these are mostly the ones that service some of the medical industry.
What would be the ‘new normal’ post-COVID-19?
Sandhar Technologies is looking at a markdown of revenues of almost 30-35%. In such a case, the survival of the company and the employees is at stake. The new normal especially concerns employees and the relevance in their present jobs. One can either sustain the business or retain the employees.
Would there be a surge in private transportation once the lockdown is lifted?
As things open up, the fear of COVID-19 may nudge people to use personal transport over public transportation. “There could be a 30% drop in the overall automotive sector across the board.”
What is the future of electric vehicles?
To reduce the carbon footprint it’s essential to conserve fossil fuels. Due to this, various governments around the world decided to switch from gasoline engines to electric vehicles. “The Indian government announced about converting 100% of vehicles to electric by 2030.” A conversion will cost the automotive sector hundreds and thousands of crores.
DR Pro Tip: Due to COVID-19 the agenda of electric vehicles may not be in the forefront for the government.
Are electric vehicles actually eco-friendly?
Most of the power generated in India comes out of coal or other fuels. So if you’re going to generate power out of coal, which is again, fossil fuels, it doesn’t solve the problem.
DR Pro Tip: Sodium powered batteries are better and more accessible over lithium.
Will India gain from the business China loses?
Yes. Jayant states that due to COVID-19 investors will shift to India for its cheap labour and ecosystem.
DR Pro Tip: The investments that were once put in China will accelerate in India due to COVID-19.
Check out the podcast on our blog page here.