The rural market accounts for 30 to 50 percent of auto sales. Now in the second wave of Corona, the situation in the auto industry has deteriorated more than before.
Auto Industry
Corona epidemic has caused havoc in the country. The second wave of Corona has shaken many industries, including the auto sector. There is a lot of pressure on the auto industry. Last year, Corona was not affected by the rural areas, due to which the auto sector made a rapid recovery. But this time the condition has become very difficult.
The lockdown was carried out across the country last year due to a corona infection. Demand for automotive business in rural areas increased rapidly after the lockdown was lifted and COVID cases improved. Along with this, the auto sector also made a strong recovery. The rural market accounts for 30 to 50 percent of auto sales. Now in the second wave of Corona, the situation in the auto industry has deteriorated more than before. This time there have been many deaths due to corona in rural areas.
Agricultural sector contributes significantly to India’s economy
Apparently, the agriculture sector contributes a lot to India’s economy. It is estimated that this year crop yield will be better due to good monsoon conditions. Despite this, people in rural areas are avoiding taking risks due to rising cases of corona and postponing any major purchases (such as vehicles).
States account for 80 percent of India’s GDP and the states come with a 90 percent share in the sales of the auto sector. Currently, lockdown has been imposed in most states due to COVID cases. 90 thousand crore rupees can be spent on medical expenses for COVID. 33 percent of this goes to the rural areas. In such a situation, it is believed that people in rural areas in India will run away from shopping for vehicles.
Shashank Srivastava, senior executive director, Maruti Suzuki India, said, during April, there has been news of a slowdown in rural markets. It also includes car shopping. Explain that in the second wave of Corona, 45 to 80 percent of the rural areas have been affected.
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