zero That’s the combined domestic vehicle sales reported by top automakers in india for the month of April. All major carmakers operating in india maruti Suzuki, mahindra and mahindra, hyundai, MG Motor and toyota Kirloskar reported zero domestic sales in april, making it a washout for automakers in the country. The automobile sector, already going through a rough phase before coronavirus crisis hit the country, is now staring at an abyss because of various factors.
Their biggest concerns are job uncertainty amongst citizens (potential customers), fear of further lockdowns and lack of demand in the wake of the recessionary outlook. Reports of various companies asking their employees to leave started surfacing as soon as PM modi announced lockdown 2.0. The auto sector was further hit with a further extension of the lockdown.Large segments of the auto industry are still not operational due to the lockdown and an entire host of smaller companies that supply components and parts to bigger companies are also staring at an uncertain future.
A report from chennai suggests that smaller auto component manufacturing MSMEs have resumed operations, but there is no demand. While auto companies have opened some of their plants after two months of lockdown where workers are working in one shift the real problem lies in demand. Many dealers confirmed that there are absolutely no buyers. They even add that many customers who pre-booked cars have now cancelled orders.Automotive Skill Development Council (ASDC) President Nikunj Sanghim who has a dealership of hero and M&M, told india Today tv that as operations resumed, many customers poured in. The sad part is that they came in to cancel their pre-booked cars.