The second wave of Covid infection has caused trouble for the automobile industry. Due to the lockdown and restrictions being imposed in the states, dealers and distributors have had to slow down their operations. Showrooms are closed due to lockdown in many states. Hence, there may be a sharp fall in vehicle sales figures in April. However, if the situation becomes normal for the industry analysts, there will be a sharp increase in sales. People would prefer private vehicles over traveling in public transport. The vehicle industry will benefit from this.
Sales may fall by double digits
But currently due to lockdown and restrictions, the sales figures of the vehicle may fall by a double digit. This fall will be seen in both passenger and commercial vehicles. Apart from this, both urban and rural markets will be affected by this decline. Experts say that unlike last year, sales of a rural sector can be seen in this year. On a month-on-month basis in April, the sales of retail and urban sectors can see a decline of 15-20 percent in all segments. Experts say that there may be some increase in the sales of cars and tractors in the month of April, while the sales of two-wheelers and commercial vehicles are expected to fall by 10 to 20 percent.
Hero Motors and Honda announced to stop production
Due to the lockdown, many auto companies had decided to discontinue their production. Hero Moto-Corp, the country’s largest two-wheeler company, has decided to stop production at all its plants from April 22 to May 1. The company will complete the required maintenance work at the manufacturing plants during the production shutdown. After Hero Moto-Corp, Honda announced a similar decision. Some other automobile companies can also take such decisions.