Maruti Suzuki Reports 89% drop in Sales for May 2020
To keep social distancing norms and to prevent the transmission further, the government of India issued a complete lockdown for a few months now. India being one of the densely populated countries, the virus spread like a wildfire even amidst lockdown. The lockdown has just been lifted a few days ago but with the Coronavirus threats still looming over our heads, not a lot of us are willing to get back to the real world. With all except the essential services being closed, a lot of businesses faced huge losses.
The automobile industry is no exception. With almost negligible sales during the COVID era, the carmakers received a huge hit in terms of sales. With all the businesses being affected, thousands of people losing their jobs worldwide and the world economy have gone under chaos. The recovering car sector will also have a huge impact on the pandemic till the world goes back to normal. This viral-apocalypse May interfere with the buyer’s spending capacity, affecting the demand and production. The rental car market and the public transport as well as taxi services will take a huge hit because of this virus.
Maruti Suzuki, the biggest carmaker in India has reported a drop of 89% in terms of sales during the month of May. The carmaker was able to sell 1,25,552 units for the same month last year, and reported sales of only 13,865 units for the month of May this year. The company also reported a drop of 86.2 per cent in total sales equating to 18,539 units in the month as compared to 134,641 units sold in May 2019. In terms of exports, it also showed a decline of 48.82% with 4,651 units last month compared to 9,089 units in the corresponding month a year ago.
Not just Maruti-Suzuki but other top brands have been facing reduction in sales as well. With April 2020 being the month of zero car sales in India, May 2020 numbers show huge reduction in sales compared to May 2019.
Here are the sales statistics of the top brands in India for May 2020:
Maruti-Suzuki has already resumed its manufacturing facilities with government issues guidelines and capacity since May 12th in the facility at Manesar and May 18th in Gurugram. The carmaker also resumed the production facility at Suzuki Motor Gujarat Pvt Limited (SMG) from May 25th, 2020.
With the lockdown being lifted, the Maruti-Suzuki affiliated showrooms have become operational in respective states with the new social distancing and sanitization norm. Few showrooms in the containment zones still remain close but are expected to be operational soon enough.
Currently, Maruti-Suzuki is reporting 6,000 bookings a month as opposed to 5,000 bookings in a day. With the economic slowdown, a lot of people are not willing to get a car at this moment. The opposite is true for first car buyers, with bookings mainly involving first car buyers and a small family car, the hatchbacks May become a trend once again.
The current COVID scenario is expected to create a rise in car sales in coming months due to the reduced usage of public transportation. With this year starting with reduction in sales, the automobile industry is expected to see rise in numbers for the second half of the year.
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