Monday, May 25, 2020 | Last Update : 11:41 AM IST

62nd Day Of Lockdown

Maharashtra50231146001635 Tamil Nadu162778324112 Gujarat140636412858 Delhi134186540261 Rajasthan70283848163 Madhya Pradesh66653408290 Uttar Pradesh62683538161 West Bengal36671339272 Andhra Pradesh2780184156 Bihar257470211 Karnataka208965442 Punjab2060189840 Telangana1854109253 Jammu and Kashmir162180921 Odisha13365507 Haryana118476516 Kerala8485206 Assam393584 Jharkhand3701484 Uttarakhand317583 Chandigarh2621794 Chhatisgarh252640 Himachal Pradesh203594 Tripura1941650 Goa66160 Puducherry41120 Manipur3220 Meghalaya14121 Arunachal Pradesh210 Mizoram110 Sikkim100

India's car sales plunge amid lockdown

REUTERS
Published : Apr 2, 2020, 12:47 pm IST
Updated : Apr 2, 2020, 12:47 pm IST

Government last week sent India into a 21-day lockdown to try to curb the spread of the virus, forcing automakers to suspend manufacturing

 India's car sales plunge. (PTI)
  India's car sales plunge. (PTI)

BENGALURU: Automakers in India saw a steep fall in sales in March as a slowdown in demand was exacerbated by shutdowns in production due to the coronavirus pandemic.

The government last week sent India into a 21-day lockdown to try to curb the spread of the virus, forcing automakers such as Maruti Suzuki, Mahindra & Mahindra, Ford Motor Co, Toyota Motor Corp and Hyundai Motor Co to suspend manufacturing.

Maruti, which sells one in every two cars in India, said it sold 83,792 in March, down 47% from a year earlier, although it said the number was not comparable with 2019 due to the suspension of operations from March 22.

“The shutdown started only last week, so the fall is still steep even if it is not comparable,” said Shashank Kanodia, an auto analyst at ICICI Securities.

Mahindra, maker of popular sport-utility vehicles such as Scorpio, posted an 88% slide in sales.

Tata Motors said its passenger vehicle sales for March fell 68%, while sale of trucks and buses slumped 87%.

Tata said in future it would report sales numbers once a quarter instead of monthly to “avoid needless short term volatility” and help investors “focus on the long term drivers of the business”.

Last fiscal year, India’s Nifty auto index tumbled nearly 44% as slowing economic growth and the rising cost of car ownership made consumers reluctant to spend and auto sales hit record lows.

Toyota said total sales in March fell 59% to 8,022 vehicles while Hyundai, India’s second-largest carmaker, sold 32,279 vehicles a 47% drop compared with a year earlier.

The country’s auto industry was already facing a slowdown in demand and government rules to adopt tougher emissions standards had forced carmakers to hike prices, driving customers away.

The Society of Indian Automobile Manufacturers, an industry body, estimates plant closures by automakers and auto part manufacturers will lead to a daily revenue loss of more than 23 billion rupees ($305 million).

The coronavirus outbreak has infected nearly 800,000 people worldwide and caused more than 38,800 deaths, according to a Reuters tally. In India, 38 people have died from 1,637 confirmed infections.

Tags: automakers, coronavirus pandemic, india shutdown, tata motors cars, mahindra & mahindra, maruti suzuki, toyota motor corp
Location: India, Karnataka, Bengaluru
ADVERTISEMENT
ADVERTISEMENT