Covid Leads Car Cos To Witness Sales Washout
With one full year of customer apprehension, policy paralysis and negative economic sentiment, the Coronavirus pandemic is literally the last straw on the Indian automobile industry's back. The outbreak has exacerbated the problems of the auto industry as there has been a record drop in factory-gate shipments of passenger cars, two-wheelers and commercial vehicles, as buyers stayed away amid the nationwide lockdown. All the manufacturers have already announced that they have already suspended production at their manufacturing facilities to contain the spread of the virus. The only saving grace is that Supreme Court has allowed auto dealers sale of 10 percent of BS-IV inventory beyond the March 31 deadline.
Market leader Maruti Suzuki India saw a decline of 47 per cent in its overall sales at it only sold 83,792 units, as compared to the 158,076 units sold during the same month in 2019. The company attributed this de-growth to the direct result of the coronavirus outbreak compelling the company suspend all production and sales operations from March 22 onwards.
Hyundai Motor India witnessed a decline of 47 per cent in sales at 32,279 units over the same period in March 2019 when it sold a total of 61,150 units. India’s second largest passenger carmaker also maintained the drop in volumes has been reported amidst the ongoing Coronavirus pandemic crisis compelling it to suspend operations when the lockdown was announced.
Mahindra & Mahindra (M&M) reported a massive decline of 88% in its total vehicle sales in March to 7,401 units due to the Covid-19 outbreak. The company had sold 62,952 units in March 2019.
Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M Ltd. said, “Our performance in March has been muted on account of the impact of the current lock-down related to Covid-19 and the disruption in our BS VI ramp-up plan. The latter was planned between February and March but was affected due to the challenges of parts supply from global and local suppliers. “
Tata Motors' domestic sales plunged by 84% to 11,012 units from 68,727 units sold in March 2019.
Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd. said, “Domestic sales have been deeply impacted by the COVID 19 lockdown as well as the planned transition to BSVI. Retail sales was significantly ahead of wholesales (>300%). ‘Productionization’ of BSVI vehicles was on track and we have wholesaled the initial few BSVI vehicles.”
Honda Cars India Limited (HCIL) also witnesses its sales plummet by 78.50 per cent last month at 3697 units as compared 17,202 units sold in March 2019.
Rajesh Goel, Senior Vice President and Director, Sales and Marketing, HCIL maintained, “The unfortunate outbreak of COVID-19 has hit us all which has impacted businesses across the world. In the current scenario, we are taking multiple measures to support our dealers and customers.”
