India was the fifth-largest auto market in 2020, As per the research India was seventh largest manufacturer of commercial vehicles in 2019. The Indian automobile industry currently manufacture 26 million vehicles including passenger vehicle. In terms of volume India will be third largest automotive market in the year 2026.
Before Covid-19 India was one of the leading auto exporter and it has strong export growth expectations in the near feature. In the world automobile industry is very important component for the economic growth, it is having around 15 million employees in Europe, 8 million in the united state of America, and 4 million workers in India. Due to covid-19 automobile industry is facing huge impact on its every sector. some of companies decided to shut down their manufacturing units because of this situation.
Disrupted supply chain.
Due to covid-19, production of vehicles is disturbed, after the announcement of first lockdown in china supply chains where immediately disrupted all over the world. In china, after the industrial shutdown, almost two third of auto production was directly indirectly affected. Its happened because china is providing around 70% of raw material to hole automobile industry in the world. 
Severe impact to GDP.
Even the situation in china was started stabilized after the mid of the mid of April, most of the American, European and Indian car manufacturing was under huge uncertainty. At the same time OEMs (Original Equipment Manufacture) are starting to sift engineering, and assembly to produce medical equipment to Fulfill the demand. but the situation remain the same, worker losing their jobs, drop in production of automotive, a severe impact to GDP.
Liquidity.
Cash is the pillar and base of any organization as it like a king, but it become critical to make during time like this. this has led various OEMs (Original Equipment Manufacture) to negotiate higher credit lines. Afterword the huge drop in market capitalization will likely accelerate industry consolidation. Because many business are not getting any additional funding and because of that they are going out of business.
In the month of February 2020 of more than 80% sales dropped as compared to January 2020, this was the strong indicator of impact of Covid-19 on global market. Forecast for global light vehicle sales in all regions assumed that the market will fall down by around by 12% in 2020.
What's Next:
Recovery of the automobile supply chain will take time, such as regulation, availability of workforce and infrastructure, etc. Eventually recovery should lead to rebound in imports and exports. OEMs is now learning form the crisis Enforce dual sourcing strategies. also production will be increased to shift the production from one plant to another.