The coronavirus pandemic’s hurting the industry real bad.
The new coronavirus pandemic has been a menace to the world ever since the disease started to spread early this year. As of date, there are 3.34-million tallied cars worldwide, resulting in around 240,000 casualties.
With strict lockdowns and preventive measures in place, mobility is absent and businesses have been hampered. One of the biggest industries that are getting pummeled is the automotive industry, of course. With a drastic drop in demand, as well as the complete closure of dealerships, auto sales have been taking a hard hit. That’s the exact case that has been happening in India.
India’s Business Today reported that the country sold zero passenger cars for the month of April. Yes, that isn’t a typo – India’s $120 billion automotive industry registered zero sales last month amid lockdowns and astringent measures to curb the spread of coronavirus, which include factory shutdowns and the aforementioned dealership closures.
This is hardly a surprise, though. India has been taking a hit since March, which had a 21-day lockdown. Maruti Suzuki, the country’s largest automaker, only sold 76,240 units that month – a 47.4 percent dip in sales compared to its 145,031 units sold in March 2019.
The Coronavirus Effect:
Within the period, however, Maruti Suzuki and Mahinda and Mahindra sold 1, 365 tractors, which are an essential part of agricultural activity and ultimately exempted from the effects of the lockdown.
“At Mahindra, we are working hand in hand with all stakeholders, especially our dealer and supplier partners, to get our ecosystem started, once the lockdown is lifted. The safety of all our employees will be of paramount importance to us while resuming our operations,” said Veejay Nakra, Chief Executive Officer, Automotive Division, Mahindra & Mahindra.
India’s lockdown may or may not be extended beyond May 3, so the future’s unclear for the market, as is for the rest of the world.
Source: Business Today India