Can the automotive market recover after the Coronavirus outbreak? Hear the opinion of Chairman of Maruti Suzuki, the leading car manufacturer in India
The global car industry has been severely affected by the ongoing unfavourable circumstances. Many businesses and factories have been shut down temporarily or are sticking to limited production. In our country, the government has put the whole nation under a lockdown, which has eliminated any chance of carrying out in-person trading activities like buying cars. No wonder, then, that it has put a toll on the sales of every car brand in the market.
Coronavirus outbreak is putting the automotive industry in great danger
Even though the current situation is quite catastrophic, on a positive note, it is expected that the car market will see a major sales boost after the lockdown. This speculation is shared by R.C. Bhargava, Chairman of Maruti Suzuki, the largest car manufacturer in India. He notes the increasing awareness among the citizens about the risk of sharing space in public transportations or cab services will push them to purchase vehicles for individual use. Hence, an increase in car sales is foreseeable. To support this theory, he also adds that the Indian buyers are now more willing toward making a buying decision as soon as the lockdown ends.
Mr Bhargava’s opinion seems to be valid, considering the recent market trend in China, the first country in the world to be hit by the catastrophic situation that has gripped the entire world. However, it also became the first country to recover from it and the automotive market has quickly recovered with similar or increased sales compared to that of the pre-lockdown period.
It is expected that car sales will be significantly improved after the lockdown
Still, it will be a few more weeks until this speculation is tested. At the moment, the Indian automobile industry is going through a particularly hard time. In March, the automotive market of India registered a massive sales drop. All car brands have suffered from an all-time-low sales last month. Of course, sales in April would be much worse. In the last couple of weeks, in view of the national lockdown, various car brands have launched online car buying features. Moreover, some of the new cars that were launched in March are likely to help the market bounce back.
Car dealerships across the country are facing enormous difficulties and many of them are on the point of going bankrupt. To make the situation even worse,many dealerships have been unable to clear the stock of remaining BSIV vehicles. The worth of unsold vehicles is estimated to be more than a thousand crore rupees. Fortunately, the Supreme Court has decided to extend the deadline for disposing of the remaining stock of BSIV vehicles, albeit with some strict conditions. Additionally, some car brands also offering financially support to their dealers and service partners.