3/7/2020 Crisis in the Automobile Industry ~ Group Discussion Ideas

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Crisis in the Automobile Industry

 Last updated on Aug 20th, 2019    Team GD Ideas  MBA Entrance
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3/7/2020 Crisis in the Automobile Industry ~ Group Discussion Ideas

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~ Important Topics for Top GD

Today (Updated on participants for
29/02/20) ~ Context: this month

The crisis in the automobile industry from the past few months has
1. Impact of COVID-19 1. Andie Suggs (1)
resulted in cutting down of more than 2 lakh jobs.
(Coronavirus) on Global 2. Arpita (1)
economy
Reasons for the crisis in the Automobile industry: 3. Chandramol (1)
2. Union Budget – 2020-21
India’s push for electric vehicles made the potential buyers to postpone 4. GAURAV MEHTA
their plans to buy their own car. (1)

Recent Comments In December 2018, the collapse of IL&IF resulted in the crisis in NBFC 5. kirthika (1)
(Non-Banking Financial Companies). So Non-Banking Financial
 Andie Suggs on Controversy companies have started implementing stricter rules in issuing loans. On
as a marketing strategy the other hand, banks are also ghting with NPAs (Non-Performing
 Chandramol on Does India Assets) and hence implementing stringent lending forms. In general,
many people buy vehicles by taking loans. So, lack of loans and rising
need ‘National Commission
interest rates are discouraging consumers and hence resulted in low
for Men’?
demand for vehicles.
 Mayur on 75% attendance is
too much for engineering Tra c Jams in India are becoming worse than ever. Due to this, more
students and more people are taking advantage of taxi services and sharing ride
 Rupesh Pal on How to services, instead of buying their own vehicles. With the introduction of
handle Abstract GD Topics? cab aggregator services like Uber and Ola, demand for private vehicles
has decreased.
 kirthika on Love Marriage vs
Arranged Marriage At present, GST (Goods & Services Tax) on motor vehicles is 28%. And
the insurance costs of vehicles, emission-related compliance costs have
also gone up. On top of that fuel prices are increasing. So, by adding all
these things buying and maintaining vehicles has turned costlier. And
hence resulted in the low demand for vehicles. 
Floods in 2018 & 2019 is also another reason for the low demand for
cars.
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3/7/2020 Crisis in the Automobile Industry ~ Group Discussion Ideas

As more startups are focusing on buying and selling pre-owned cars,

they have become attractive to middle-class people. Despite the
slowdown of automobile sectors, the pre-owned car market has
witnessed double-digit growth. Thereby, the second-hand car market
boom has also contributed to the crisis in the automobile industry.

Recent posts

 Impact of COVID-
19 (Coronavirus)
on Global
In October 2018, Supreme court announced that only BS-VI vehicles
economy Feb 28,
should be sold after April 2020 in a move towards using cleaner fuel.
2020
So, the automobile companies are trying to sell the unsold stock of BS-
 Union Budget –
IV vehicles before the deadline. They are o ering discounts to attract
buyers, but that is not working. That’s maybe because people are 2020-21 Feb 17,
waiting for more discounts in the coming days. 2020
 Let’s Discuss –

What needs to be done: Day 35 |

Participate in the
The government should bring scrappage policy by giving incentives to Group Discussion
buy new vehicles in exchange for old vehicles. This will help the Sep 24, 2019
automobile industry to a great extent and also will help the government  Print Media vs
in its goal of phasing out fuel-based vehicles and replacing them with
Digital Media Sep
electric vehicles.
18, 2019
The demands to reduce GST rates for cars should be analysed  Let’s Discuss –
thoroughly. Day 34 |
The industry should focus more on converting fuel-based vehicles into Participate in the 
electric cars. Group Discussion
Sep 17, 2019
The Indian government should take steps to increase the availability of
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3/7/2020 Crisis in the Automobile Industry ~ Group Discussion Ideas
The Indian government should take steps to increase the availability of
funds for issuing loans to potential buyers.

As the demand for public transport and cab sharing services is rising,
the automobile industry should focus on manufacturing buses and
other suitable vehicles in accordance with the growing demand instead
of manufacturing more cars. This will help in reducing vehicular
pollution and also will boost the automobile industry.

Conclusion:

Crisis in the automobile industry can worsen India’s economy because

it contributes to half of the manufacturing GDP. Moreover, some
industries depend on the automobile industry by supplying input goods.
The government needs to bring policies to improve the situation of the
automobile industry to prevent more job losses.

Your Turn…

What are your thoughts on this topic? Express your views through the
comment section below. And subscribe to our blog to read answers to the
trending GD topics.

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Table of Contents 

 MBA Entrance Exams, Bank Exams, Campus Recruitment, Engineering

GD topics   Current A airs GD Topics, Economic GD Topics  automobile
industry crisis

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