COVID-19 -Positively and Negatively Affecting EV Segment

Coronavirus has impacted all fronts of life and industries; the electric vehicle segment is no
different. With the current news of a possible extension, it would be difficult for small players to
hold their ground. This fact was also reiterated by Society of Electric Vehicle manufacturers in
their recent report. But all is not lost, as there would always be a flip side to this pandemic as by
the end of the pandemic, people would appreciate the importance of air quality and mobility
attracting more individuals to try out electric vehicle alternatives.

Currently these EV manufacturers are working around the clock monitoring each and every
situation that is taking place due to the pandemic. Due to the nationwide lockdown, for the past
25 days, retail sales had not attained even a single-digit resulting in ripples across the backend
raw material sourcing and production. Even if the lockdown has been lifted, it would take
another few weeks for the economy to swing back to its full potential making things even worse
at present. Most of the small scale manufacture work on the “Just in Time” production model
were they produce vehicles based on customer needs. With the sales figure not moving up the
ladder, production is halted for time indefinite. Companies with a deeper pocket would be able to
sail through the current situation but not before taking heavy damage to their already bleeding
“Profit ship”.

COVID 19 would also prove to be a barricade in bringing in fresh funds from potential investors
as the world economy will most likely take a nosedive by the end of pandemic season. With the
situations having no possible short term end, the current predicted progress rate that the EV
market was enjoying would be crippled that may result in some churn in the two-wheeler and
three-wheeler electric market.
With nature’s law of “Survival of the fittest” in place, on a positive note, only the best quality
players with enough financial strength and sustainable the idea would be left in the market by the
end of the season forcing the mundane and the copycats to go out of business. It is to be seen
whether the corona pandemic is a blessing in disguise as the entire world markets forever would
change its perspective and mode of operations by the end of the pandemic season however it is
for certain that EV segments would be more competitive for survival and existence.