Mumbai: Indian automakers are expected to report the worst demand decline in nearly three decades in June in three months, with a steep decline in the wholesale and retail sales of passenger vehicles (cars and UVs) in the quarter, the world’s worst. Happened with the strictest and most widespread coincidence. Lockdown to prevent coronavirus from spreading.
The industry may see a 25–45% overall decline in Q1, a 50% growth rate in heavy commercial vehicles, expected to touch 2008 sales levels. According to industry estimates, PV wholesale figures could drop by 1.5 lakh units. 8.73 lakh units. Retail sales could fall to 2.5 lakh units out of the 7.94 lakh units recorded last year.
“Because the industry is expecting better sales performance in June, plant level capacity utilization is just 20-40%,” said Rajan Vadhera, president, SIAM.
At the ET Auto conference, Mahindra & Mahindra MD Pawan Goenka said, “While the sales figures in May were just a frightening reflection that companies reported in the same month last year, they are better than the big zero in April.” Last week. He mentioned that areas like SCVs, small cars and two-wheelers have seen a good pick-up with rural sales.
Industry watchers say demand will depend on the fundamentals of the economy and how Covid’s position develops. Executive Director of Maruti Suzuki, Shashank Srivastava said, “In June, about 90% of dealer outlets were open and in the case of Maruti Suzuki, 2,800 out of 3,087 dealerships opened.”
Focusing on ecommerce and personal mobility is benefiting some pockets of the market. Wadera said, “The segment like two-wheelers is facing a demand issue as they have now reached 65-70% production levels, while e-commerce has started growth for small and medium commercial vehicles. ”
However, a major concern is the truck business.