Covid-19 put down the automobile industry at risk

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The covid-19 pandemic unexpectedly struck the business. Numerous unpredictable lockdowns affected the market share of the car market. When specifying the car industry, the pandemic caused a gradual decrease within the sales because the industry suffered about Rs 2,300 crores of loss per day and therefore the estimated job loss within the specific sector was about 3.45 lakh.

In the wake of covid-19 and imposing the restrictions on the people’s movement was creating a risk to the recovery in automobile sales. A really weak auto dealership was seen during July 2020, mostly because of the fear of the people living within the cities, taluk places and also the residence of the villages, so were under the fear to travel even to the nearby places because of the fast spread of Coronavirus.

India, under the influence of coronavirus pandemic, the luxurious car segment was witnessing a high downfall. The reopening of the showrooms was a relief to several automobile companies because the sales returned to the market step by step during June. When separately analyzing the auto registration and when betting on to the Google search activities supported the highest cars and two-wheeler models, was seen to possess slight moderation. It had been noted to own a drop of 38% within the registration of two-wheelers by the top of July 18. Additionally, to the two-wheelers, there was a drop of 18% of registration for the passenger vehicles.

An analyst at Jefferies India, on a note, said that “India’s passenger vehicles (PV) and 2W registrations, after improving in May and half of June, are flattish for the last 3-5 weeks. On a year-on-year basis, tractors rose 22% last week, PVs were down just 18%, while 2Ws declined 38%. Google search trends for cars and 2Ws inched down week-on-week, but are broadly holding up near the January-February level. an extra pick-up in registrations is crucial though,”

The sales of luxury cars in India comprised about 30,000 units in 2014 so moved on to 2015, the sales increased to 31,000 units. But the arrival of the pandemic troubled the luxury car market-leading right all the way down to a loss in sales for the best market players. All dealerships were closing down during the lockdown and so the vehicle production was clearly disrupted. As a result, all the produced vehicles were stuck within the plant itself. For the once these manufacturers expect a gradual recovery from these disruptions. When unemployment increased, the purchasing power of the people gradually got decreased making it the worst dream for the car industry.

On analysis of the car industry, the demand for luxury cars was at its peak before the pandemic hit. But now the color has changed, to extend the patron demand for preowned cars because the people have begun to think and use their money carefully during this COVID-19 pandemic.

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