India’s mobility sector was already slowing towards the end of 2018, faced with a liquidity crunch, higher acquisition costs, and waning consumer demand but the coronavirus really threw a spanner in the proverbial works.
According to McKinsey, in March 2020 domestic automotive sales were 45 percent lower than they were in March 2019 after the Indian government instituted a lockdown. The sharpest decrease occurred with CVs, where year-over-year (YoY) sales fell 88 percent. April and May 2020 brought even worse news, with YoY sales for those months more than 90 percent lower across all vehicle segments.
Things weren’t any better for the shared-mobility sector either. In the ride-hailing segment, which experienced high double-digit growth in 2018, the number of rides per day only grew minimally the first six months of 2019. The first difficulties arose from changing regulations at the state level and a shortage of driver partners. More recently, COVID-19 has caused usage of ride sharing and other services to plummet.