Indian Auto Dealers predict Slow Sales Recovery due to Covid

Coronavirus infection has increased rapidly even in rural areas and small towns of the country. Last year, people were buying their cars to keep safety and social distance. If Coronavirus continues to spread in the village, then auto sales could be significantly affected.

Dealers in auto companies say the car and sports utility vehicle (SUV) saw a strong recovery after last year's coronavirus crisis. The reason for this is that during the era of the Coronavirus crisis, the demand for private vehicles had increased. People were buying their cars to keep security and social distance.

With the Corona crisis deepening in the country, now the challenges of automobile companies have increased. On Monday, The Automobile Dealers Association said that the rehabilitation of Auto Sales could take longer this time.  Corona infection is now beginning to increase in the countryside also in the country. So, the recovery of Auto Sales can be delayed. The Federation of Automobile Dealers Association or FADA has stated that it is now expected to take 2 years to reach the peak level of auto sales in March 2019.

The upheaval in every person's life has led to a rapid lockdown in many states due to the rapid rise in Corona infection in the country. In the first phase, many states had a lockdown of 7 or 10 days, which they are consistently pursuing. This has affected the movement of people. Cinema halls, restaurants and shopping malls etc. have been shut down due to the lockdowns done in the states. FADA President Vikesh Gulati said, "India is going through a very difficult phase due to the escalating transition of the second wave of coronavirus. Right now, the life of every person in the country is in turmoil."

Rural areas have a major share in automobile cells in the country. In cities, where the working class buys a car from their salary or business income, in rural areas, people usually try to buy a vehicle from income from work such as farming and animal husbandry. While business is expected to be affected due to the lockdown in the big cities of the country, many people are also losing their jobs. Compared to this, there has been no significant impact on the income and work of the people of rural areas of India. If Coronavirus continues to spread its footprint in these areas, their income may also be affected, which is likely to affect auto sales in the country.

FADA said that vehicle registration decreased by 28% in April compared to March. By the end of May, the lockdown has been increased in many states, due to which auto sales may remain weak. FADA said, "Consumer sentiment has been very fragile in the early week of May. The situation is worsening due to partial or complete lockdown in many areas across the country. The number of customers reaching out car dealers has come down by 30%." is." Many Corona crisis are also deferred a decision to buy a car in this round polity's largest car maker Maruti Suzuki India Ltd (MSIL) and the largest two-wheeler maker Hero MotoCorp (Hero MotoCorp incidence of coronavirus by) In view of this, it has closed its plant till 16 May.