The Indian automotive industry was heavily hit by the slump in the economy. The COVID-19 pandemic compounded its problems.

There were job losses in the primary, secondary, and tertiary sectors of the industry. Layoffs and expansions halted was common news. Ford also decided to exit India eventually during this period (December 2019) and are going to sell their plants to Mahindra. Other giants such as Volkswagen and Toyota have either halted expansion plans or decided not to invest further.

Any sign of a rise in demand in the car market can be manipulated to look like growth. There has been a trend of people shouting "Recovery, Recovery"  at the wag of a  finger. So does Tata's impressive sales figures mean the economy is recovering? NO, but it does mean the auto industry is picking up. Pent up demand and clearance of old stock could be two reasons.

Tata was doing well before the lockdown as well, as it has been a steady rise for them in the passenger vehicle market. The launch of the harrier and introduction of the Nexon Ev played a key role in this. This is a far cry from what Tata had attempted to do with the Nano.

Tata Motors has announced its sales figures for Q2 FY21 as well as for the month of September and the numbers show a massive increase in sales for the Indian automaker.

During the month of September 2020, Tata Motors bagged the sport of being the third biggest automaker in the country in terms of passenger vehicles. Tata Motors sold a total of 21,199 units during September 2020. In comparison, during the same month last year, Tata Motors had sold 8,097 units, which means, the company saw an increase of 163% in domestic passenger vehicle sales. The Nexon ev also broke the record for the most selling Electric vehicle , by selling 924 units in September.

This may not be a permanent solution to any of the auto industry's woes but it’s certainly a bright spot.