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6/12/21

Covid's second wave punctured passenger car sales; Sales of Maruti, Hyundai, Kia, Tata Motors fell by 64-72%

Automobile:  Covid's second wave punctured passenger car sales; Sales of Maruti, Hyundai, Kia, Tata Motors fell by 64-72%



Sales of 1.55 lakh vehicles in January reached 42,000 in May
Large impact on sales in the auto sector due to lockdowns and restrictions in the states



Corona's second wave has had a huge negative impact on passenger car sales. The recovery that followed the first wave last year was washed away by May this year. The second wave of Corona across India started in March and according to the Society of Indian Automobile Manufacturers (SIAM), passenger car sales at that time were 1.57 lakh vehicles. That compares with 41,536 cars sold in May, down 73.54% from three months ago.



Recovery washed out after first wave
Divya Bhaskar obtained passenger car sales figures from SIAM from May 2020 to May 2021 and analyzed that the recovery that followed the first wave of Covid was washed away in these three months. 

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According to SIAM figures, 14,460 vehicles were sold in May 2020 amid a controlled environment. The latter was unlocked and when the market opened, car sales crossed 1.83 lakh in October 2020. However, with the end of the festival and the rise in car prices, sales were hovering around Rs 1.50-1.55 lakh per month till March 2021.




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Sales
of top companies like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra and Kia Motors were hit hard during March, April and May, according to data from the Federation of Automobile Dealers Associations (FADA). Market leader Maruti Suzuki's car sales have declined by 72% during the period, while Tata Motors' sales have declined by 62%. Kia, a new generation car, saw its sales fall by 66% and Hyundai's by 65%. Mahindra's sales are down 64%.



Demand has been hit hard in the second wave,
SIAM Director General Rajesh Mann said, adding that many states had imposed lockdowns since the start of the second wave in India. In addition, different types of restrictions were imposed in many states, affecting both car production and sales. Due to the lockdown, many dealerships were closed and demand from the people fell sharply, leading to a 10% drop in sales between March and April and a 70.58% drop between April and May.



Companies have resumed limited operations
Rajesh Mann said the lockdown is opening in phases and markets in the states are slowly opening up. A quick vaccination drive will help control the impact of corona in India. This will enable business activity to be managed steadily and sales are also expected to improve gradually. 


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Now many companies have resumed limited operations. Guidelines and protocols for sanitation and social distance are being strictly followed in the automobile sector factories. Also companies are vaccinating their employees. As we see more and more people being vaccinated, we hope that operations will gradually accelerate.





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Sales decreases the risk of defaulting dealers
said vinkesa Gulati, president of the Federation of Automobile Dealers Associations (broken) was in the second wave was fatal because there was not a house in the country, which have not been affected koronani. It was more prevalent in urban as well as rural areas this year, which has had a devastating effect on the automobile market. Many states had lockdowns for the last 30-35 days and South India still has lockdowns. Dealers' income has been affected due to low sales and they will not be able to repay their loans on time and there is a danger that they will become defaulters. FADA has appealed to the Prime Minister to give such dealers a 90-day moratorium period instead of restructuring their loans.

Read in Gujarati news 

Hoping for a quick recovery as the monsoon started on time,
Vinkesh Gulati said the 9 days of June saw better-than-expected sales after the states unlocked due to the demand in the system when the lockdown was implemented. If this trend continues, sales are likely to be similar compared to June last year. The arrival of monsoon in India has been timely. If the meteorological department's forecast is taken into account, normal and even rainfall can provide early relief to the rural economy and lead to rapid demand. In this case the recovery rate may improve.

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