Automakers fear dent in sales as infections surge
Maruti Suzuki said auto sales were correlated to economic growth and, being a discretionary purchase, to consumer sentiment
Leading automobile companies like Maruti Suzuki India (MSIL), Toyota Kirloskar Motor, and Honda Cars fear a dent in sales as cases show a surge across the country.
The country’s largest carmaker MSIL stated that the auto sales were correlated closely to economic growth and also (being a discretionary purchase) with consumer sentiment.
“The Covid-19 situation is obviously a negative for customer sentiment and thus has a negative impact on sales,” Shashank Srivastava, executive director (sales and marketing), told
PTI when asked about the impact of second wave of the pandemic on the company’s sales.
Lockdowns make it physically impossible to deliver cars, and the deterioration in the Covid situation even without lockdown psychologically dents consumers’ propensity to buy, he noted.
Similarly, Toyota Kirloskar Motor (TKM) Senior Vicepresident Naveen Soni acknowledged that localised restrictions have impacted order flow and delivery schedules.
“We will be able access trends and define numbers only by the end of the month depending on the severity and extension of the restrictions. As of date, we have had a good number of pending orders that had to be carried forward from the month of February and March to April. Therefore, we are striving to meet the customer demand in spite of the local restrictions and lockdowns,” he noted.
On manufacturing operations, Soni said the company continues to cautiously proceed with vehicle production.
"Our immediate focus is to fasten and streamline the demand and supply processes with more accuracy and manage production, along with faster deliveries making it easier and convenient for customers by reducing the delivery time," he added.
Well-being of the employees as well as dealer and supplier staff are sacrosanct and the automaker has already reintroduced monitoring systems which were in place including submission of a self-declaration health form, Soni said.
"As responsible corporates, we are continuously monitoring the situation carefully and will take accurate actions, as and when required. More importantly, this time we have precious lessons from last year to learn, unlearn and reflect upon," he noted.
Honda Cars India said it is keeping a close look at the emerging situation.
"Lockdown and weekend curfews will impact sales as showrooms will be shut in some of the markets. We are currently assessing and taking feedback from various cities about its extent," Honda Cars India Senior Vice President and Director (Marketing and Sales) Rajesh Goel noted.
India's total tally of COVID-19 cases crossed the 1.50 crore mark on Monday with a record single-day rise of 2,73,810 new coronavirus infections, while the active cases surpassed the 19-lakh mark.