Factors that affect the demand and supply of automobiles are discussed. Demand is impacted by price, availability of financing, income levels, quality of public transportation, advertising, consumer tastes, fuel prices, income distribution, economic growth, and technology. Supply is affected by price, costs of production, technology improvements, taxes, and disruptions in the supply chain. The COVID-19 pandemic significantly decreased automobile sales due to lockdowns but later increased demand as people sought private vehicles for safety, and disrupted supply chains due to import issues.

1. Factors Affecting
Demand & Supply of
Automobile Industry

2. Demand Curve
Price
Quantity

3. FACTORS AFFECTING DEMAND OF
AUTOMOBILES

4. Demand
● Higher the price of automobiles, lower the demand of
automobiles.
● Availability of finance option increases demand of automobiles.
● Increase in income of people increases the demand of
automobiles.
● Better the presence and quality of public transport, lower the
demand for private vehicles.
● Advertisements will lead to increase in demand.
● Change in taste of consumers will lead to increase in the
demand.

5. Demand
● Higher the price of fuel, lower the demand for automobiles.
● Income distribution in favour of rich class, demand for
automobiles will increase
● Economic growth and development increases the demand of
automobiles
● Technological advancement will lead to increase in demand
● Seasonal festivals lead to increase in demand during that
time.

6. Supply Curve
Price
Price
Quantity

7. FACTORS AFFECTING SUPPLY OF
AUTOMOBILES

8. Supply
● Higher the price of automobiles higher will be the supply
● Prices of factors of production
● Technological advancement increases supply of automobiles.
● Decrease in taxes increase supply of Automobiles.
● Supply Chain disruption decreases supply.

9. Effect on Industry due to COVID-19
DECREASE IN SALES
Due to the lockdown the sales of
automobiles were hugely impacted.
They were affected so much that
April 2020 became the first month in
the history of india in which not even
a single car was sold.

10. Effect on Industry due to COVID-19
SUPPLY CHAIN DISRUPTION
The pandemic caused huge
disruptions in the availability of raw
materials which have impacted the
supply and manufacturing process.
As many components of the supply
chain were being imported from
china, during the pandemic
production of all major companies
was brought to a complete
standstill.
INCREASE IN DEMAND
Due to the increased
awareness to stay safe
and secure,the pandemic
has caused people to
move toward owning
personal vehicle and as
soon as the lockdown
lifted people started
booking cars.

11. Thank You
Group
Members:
Mayank Jaiswal
Tanya Jain
Vidisha Verma
Utkarsh Singh
Wilson V Shaji