New Delhi: In the month of May, vehicle sales dropped by over 55% month on month (MoM), courtesy of the lockdown introduced in many states throughout the nation to tame the second wave of COVID-19. In comparability to May 2019, auto sales plummeted by over 70%.
The drop in sales was witnessed throughout all vehicle classes. Two-wheelers sales nosedived by 53% whereas passenger automobiles noticed a 76% dip. Tractors and business car sales dipped by 57% and 66%, respectively. Also Read: Centre units pace restrict for automobiles in Delhi, heavy fines for over dashing
However, auto sales are witnessing a comeback in June. In the primary 9 days of June, vehicle sellers are witnessing sturdy demand, stated Vinkesh Gulati, president of the Federation of Automobile Dealers Associations (FADA). “The first 9 days of June noticed a greater begin than anticipated attributable to pent-up demand.”
Gulati expects that on the present tempo, June 2021 figures might outcome in virtually equal sales when in comparison with June 2020. “Overall demand recovery will be slow as rural markets continue to struggle with post covid effects,” he added. Also Read: Maruti Suzuki to launch new automobile cheaper than Alto? Check anticipated value and different options
“While a handful of OEMs have announced financial help to their channel partners, others are yet to do so. Hence, FADA humbly requests all those OEMs which have still not announced any financial assistance to kindly do it urgently,” Gulati was quoted as saying by Times of India.
The ongoing lockdown is negatively impacting the enterprise of automakers and auto sellers in India. The lockdown in just a few states has lasted over 30-45 days and it’s exceeding in just a few areas in South India.
Gulati famous that the income for many of the sellers are negligible as there have been minimal sales. Therefore, sellers are more likely to be going through troubles in repaying their loans.
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