- Vehicle sales for passengers are down from 251,516 to 25,516
- The market is currently in a 21-day lockdown across the country.
- The estimated number of 15,000 un-sold BS4 vehicles and units are remaining, with dealers accumulating an amount of several thousands in rupees.
In the wake of the coronavirus epidemic, many industries have raised stability concerns, and the auto industry is just one of the most vulnerable. Prior to the outbreak, the sector was already struggling with decreasing demand, as car makers were adjusting their stock prices in light of the new BS-VI policy. However, the outbreak has made the situation worse.
Wuhan, the center of COVID-19 Wuhan, was also the most significant manufacturer of auto components for a number of big companies. Hence, the lockdown caused an enormous loss across all vehicle categories, including commercial, passenger, and two-wheelers; according to a report from the Society of Indian Automobile Manufacturers (SIAM) vehi,cles for passengers have declined to 251,516 units. Commercial vehicles dropped to 58,670, and motorcycles decreased to 816,679 units by February, all by itself.
After the first 100 cases were recorded in India and the biggest automakers were proactive in bringing the operations of their factories to stop: Maruti, Hero MotoCorp, and Bajaj Auto shut their factories at Gurgaon and Pune until March 31, Mahindra & Mahindra closed their manufacturing plants at Mumbai and Nagpur as well as world-class automakers like Fiat and Mercedes have ceased operations, along as Tata Motors, Hyundai and HondaCars.
Now, the sector is undergoing the 21-day lockdown across the nation that has brought the whole industry to a standstill. In assessing the growth of the market, experts anticipate a loss of around 100,000 crores to the $120 billion domestic market.
The outlook is dim for the auto industry since buyers are not making shopping trips in the wake of the coronavirus outbreak. In addition, the lockdown is effective. The retail sector experienced some hiccups in March and ended up in the year’s financial year in a poor state. In addition, dealers are having trouble with their BS4 complaint stock that was due to be sold by March 31, and it now isn’t possible. The estimated 15,000 remaining BS4 vehicles and SUVs remain, and dealers are losing of several hundred thousand rupees. Industry experts and leaders are of the opinion that this slowdown will impact motorcycles the hardest. There was a decline of 22% in February 2020 on its own, and with such figures, it is alarming, which is why the lockdown is likely to make it worse. Incorporating scooters into the list could make the numbers up to 7,00,000. Scooters in the two-wheeler segment.
If operations are resumed after April 15, when the business resumes, the recovery will be less successful. It’s almost the same as starting from scratch because customers will not be able to return to the showrooms in a short time. Manufacturers will need to find alternatives to meet their customer demands. This may take time to get to an acceptable production rate as the governing agencies govern the process. However, there is hope for intervention from the government with fresh changes, policies, and guidelines to aid the industry in navigating this difficult phase.
