The unexpected trip: The future of mobility in India beyond COVID-19
This article was written collaboratively by the McKinsey Center for Future Mobility. The authors include Patrick Hertzke, Jitesh Khanna, Khushboo Kumra, Timo Möller, and Gandharv Vig.
COVID-19 has presented India with an unprecedented economic, humanitarian, and healthcare challenge. The lockdown measures have helped contain the spread of the coronavirus but exacted an immense economic toll, with economists now predicting that the country’s gross domestic product will shrink between 1.5 percent and 5 percent during the 2021 fiscal year.
On the business side, India’s automotive and mobility sectors are among the hardest hit. Following the pattern seen in countries where COVID-19 spread earlier, lockdown measures and other restrictions have limited travel and left many consumers unable or unwilling to purchase vehicles. Adding to the pain, the coronavirus took hold just as automotive OEMs and mobility players were attempting to recover from a precipitous drop in annual sales in 2019.
When looking beyond the immediate challenges, however, the picture is not as bleak. Over the long term, as COVID-19 is controlled and India enters the next normal, we expect that automotive and mobility players will return to their former strength.
This McKinsey & Company article examines the opportunities for OEMs and other stakeholders to think about new and innovative business models. Read the full article by clicking the link below.