Covid Effect: Passenger Vehicle Sales Down By Nearly 50%
The Covid pandemic has taken the world by
storm. The economic effects of the virus have been visible from the early days
since a major part of the economic activities had stopped. A similar effect has
been seen in the Indian Automobile market with the sales volume plummeting by
49.6% in the month of June. The passenger vehicles sales went from 2,09,522 in
the month of June last year to 1,05,617 in June this year as the auto industry
has been reeling from the effects of the pandemic and is looking for recovery.
The two-wheeler sales also went down by 36.56%
and came down to 10,13,431 in June this year as compared to the 16,49,475
vehicles that were sold in June last year. Scooter sales were down by 47.37% at
2,69,811 units sold against 5,12,626 units sold during the same period.
Motorcycle sales also took a hit and saw a decline of 35.19% at 7,02,970 as
against 10,84,596 in the same period last year.
A senior from the automobile industry
commented that it will take 3-4 years for the industry to recover from the
slump and reach 2018 levels. The disruption in the supply chain related to the
pandemic also came at a time when the auto industry is dealing with a slowdown.
The automakers have also had to increase the price of its vehicles due to the
adoption of tougher emission regulations by the govt., which has also driven
consumers away.
The spread of the virus and subsequent
lockdown across the nation had forced the automakers to report 0 sales in
April, making the situation worse for the sector. While Maruti Suzuki’s sales
in June went down by 50% against the same month previous year, Hyundai reported
a 49% drop in sales for the same tenure.
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