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April 2020 will be remembered as the darkest month in the history of the Indian Automobile Industry. This should probably be the first month of ZERO dispatches from the OEMs to the respective dealerships. The retail scenario remained the same and ZERO retails were done to the end customers as well.
Corona virus has impacted the automobile industry across the globe and India too wasn’t shielded from it. While the lockdown severed the industry volumes in the last 10 days of March 2020; the extended lockdown in entire April 2020 bought the industry volumes to Zero. Over 2.45 Lakh passenger cars were sold in the Indian market in April 2019 – Who would have imagined that the industry shall report 0 sales an year after! The domestic sales fell -100% YoY; but the only saving grace was the exports of the respective OEMs. However; the export volumes were minuscule too as the OEMs couldn’t operate (manufacturing) in majority of the month.
Let’s see on how the volumes recorded Zero sales in Apr’20 v/s Numbers in Apr’19 –
The Indian Government has been criticized for implementing a harsh lockdown across the sub-continent and businesses termed as ‘non-essential’ hasn’t been allowed to operate in the timeframe. Auto Punditz supports the government stand even though it has impacted the businesses dearly. We believe the business losses in this time will be a short term dent and shall be able to thrive in a stronger way post the pandemic. However; this shall only be possible by extensive support package from the government to boost the economy. And the Auto Sector shall require special incentives from the government to get back to shape.