Impact of COVID-19:Automobile indusrty, 60% Sales decline March 2020 || Automobile industries already faced huge slowdown in 2019 and after that when slowly it started going back on track then suddenly due to Covid-19 (CORONA VIRUS) industries are again facing huge downfall. As per the SIAM ,Auto industry is at the sharp edge & it takes time to recover from this situation.
So Let’s have a look on Top 5 Automakers in india & their sales figure impact due to Covid-19 (March 20 Data)
|Mahindra and Mahindra||15,000||3,383||22.55|
- Maruti’s inventory – including its stockyards and dealer networks – stands at around 130,000 units whereas its domestic sales during March was 78,344 units.
- Similar Hyundai’s inventory stands at 35,000 against March sales of 26,300.
- Tata Motors, the inventory is around 20,000 against March sales of 5,714.
- Mahindra and Mahindra, the inventory is around 15,000 while March sales stood at 3,383 units.
- Honda Cars, the inventory stands at 8,000 units while March sales were at 3,697 units.
According to a Maruti Suzuki India spokesperson said “We started the transition to BS VI from April 2019. We stopped the production of BS IV from January 2020. So, there is no stock of BS IV. As regards network stock, we have close to 130,000 cars. We were prepared much in advance and were bringing out one model every month of BS VI-compliant cars,”.
According to a Hyundai Motor India spokesperson, “We have stopped making BS IV cars many months ago and are making only BS VI cars. We do not have any inventory of BS IV cars in the plant at all. As for BS VI cars, we are still in the process of stocktaking.”
Let’s have look on March 20 Figures of Whole Auto Industries in India & Impact of COVID-19 on Automobile indusrty
The industry produced a total 1,447,345 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycle in March 2020, as against 2,180,203 in March 2019 with a degrowth of (-) 33.61%
“According to data released by industry body Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined 51% to 143,014 units last month. While sales of commercial vehicles crashed 88% to 13,027 units, those of two-wheelers fell 40% to 866,849 units.”
|Data as per SIAM|
|Vehicle Type||March 19||March 20||Loss %|
Analysis of impact of Covid-19 on global auto industry
- Volkswagen announced that it will suspend its production for two weeks & More till lockdown.
- Toyota and Tesla have suspended their production as the dearth of automotive components, which are majorly exported by China, continues.
- Hyundai, Volkswagen, and many others have put a hold on their production unit as the pandemic spreads globally. In February 2020.
- Hyundai Motor Ulsan plant put a break on its production after its one of the employees tested positive for coronavirus.
- Tata Motors Group has reported a 35 percent decline in global wholesales for the fourth quarter (January-March 2020) by selling 231,929 units. This includes Jaguar Land Rover as well.
“China Association of Automobile Manufacturers, the overall vehicle sales saw a plummeting 18% year on year to 1.94 million units in February 2020. Moreover, sales of new energy vehicles (NEVs) saw a downfall of 54.5% in January 2020 as the COVID-19 weighs on the largest car market across the globe. Moreover, the aforementioned association has recently forecast a 10% in sales for the first half of 2020 and a 5% decline for the full year.” Report
“Wuhan is Known as Motor city , which has several plants General Motors, Honda, Nissan, Peugeot Group and Renault. these plants are largely impact by the Covid-19.”
Despite of Huge downfall here How carmakers, auto sector are helping to fight COVID-19: Maruti, Hyundai, Tata Motors, Honda ,Mahindra, Hero,TVS Motors etc.
- Tata Trusts (Rs 500 crore and respirators)
- Hyundai (Rs 7 crore, ventilators)
- Maruti Suzuki (ventilators, masks)
- Mahindra Group (ventilators, funds, masks)
- Honda India Foundation (Rs 11 crore)
- Skoda Auto Volkswagen India Private Limited (Rs 1 crore)
- Mercedes-Benz India Limited (hospital)
- MG Motors (Rs 2 crore)
- TVS Motor and group companies ( Rs 25 crore)
- Bajaj Group (Rs 100 crore)
- Hero Group (Rs 100 crore, sanitisers)
- Amara Raja (Rs 6 crore, temporary shelter)
- Steelbird Hi-tech India Limited (ambulance, free helmets, food packets)