Domestic Auto Companies Caught In Deep Trouble Due To Coronavirus Lockdown

The country’s automobile companies are currently in the most difficult phase of their history. Auto companies have suffered a major lockdown in March over the last full year. Sales of cars of the country’s largest car company Maruti Suzuki decreased by 47 percent, while the sale of Tata Motors decreased by 84 percent. Eicher commercial vehicle sales were 83 percent, Ashok Leyland’s trucks and buses saw a decline of 90 percent. The figures of other companies are yet to come, but they do not expect so much.

Even if the lockdown ends by mid-April, sales of cars are unlikely to increase. The situation that has arisen due to the corona virus has stalled not only the sales of the cars launched in the last few months, but also the future of at least six cars launched during the next three-four months. But there are question marks also.

Launched like Hyundai, the new Creta created a huge buzz in the market and it had over 14,000 bookings before its launch, but due to the lockdown neither the dealers nor the customers get the delivery. Has been The company has closed the factory from March 23, 2020 until further orders. Honda has a similar situation. It had made all preparations to revamp its much-loved brand city, but the lockdown blew the company’s plans.

Maruti Suzuki also introduced its best-selling compact sedan Dzire in a new avatar, but it has not started selling due to the lockdown. On Wednesday, Maruti Suzuki reported that its total sales declined by 47 per cent in March, while sales fell by 16.1 per cent during the entire financial year (April 2019 to March 2020). The company has sold a total of 18,62,449 cars in the financial year 2019-2020.

Tata Motors, which has been continuously trying to strengthen its market penetration by launching new models, sold only 11,012 cars in March this year, which is 84 percent less than in March 2019. If we talk about the entire financial year, there has been a decrease of 35 percent in the sales of the company’s vehicles. Eicher and Ashok Leyland, the two truck and bus manufacturers, have very dismal sales figures. Sales of commercial vehicles of both have come down by 83 per cent and 90 per cent respectively. Commercial vehicle sales may decline further due to the way industry production is expected to remain sluggish in the coming months due to the lockdown.

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