In May 2021, almost all the markets remained closed during the lockdown in most parts, due to which the retail business of MG Motor India has been badly affected.
Mg Motors
Production in the Auto Sector Due to the Second Wave of Corona Virus MG Motor India on Tuesday informed that there has been a decline in the production of cars in the month of May due to the lockdown and restrictions in most of the states across India. Instead of production, the company chose to focus on aiding in the fight against the second wave of the pandemic COVID-19.
The shutdown to divert oxygen for medical use as well as a global shortage of semiconductor chips affected MG Motor’s production and MG Motor sold just 1,016 units for the whole of May. Retail business was also affected due to closure of most dealerships. This decline is likely to happen for most auto makers as well, as many companies have chosen to use the time and resources to aid in the fight against COVID-19. In addition, the automaker recently offered 200 permanent beds for COVID-19 patients.
The company said in a statement that the retail business was badly affected as almost all the markets remained closed during the lockdown for the most part of the month of May 2021. The company had sold 710 units in May last year, when the nationwide lockdown affected sales. The carmaker said that the production level is also affected by the lack of semiconductor chips globally.
Sale will be less in June as well
MG Motor says it partnered with Devanandan Gases in Gujarat to help increase oxygen production. An ambulance of MG Hector has also been deployed to assist the medical professionals. Rakesh Sidana, Director (Sales), MG Motor India said, “At this point of time, our efforts are directed towards keeping people safe and providing maximum service to the community. The ongoing lockdown in some states in June 2021 indicates that there will be a partial reduction in overall production for the next month.
However, Sidana said that the booking trends suggest that the times ahead will be no less than a challenge as compared to April and May.
Obviously the auto industry in India has had to navigate turbulent waters again due to state-imposed lockdowns and restrictions, with many state governments now gradually easing the lockdown where cases are showing a decline. Southern Indian states such as Karnataka, Tamil Nadu and Andhra Pradesh are still red zone areas, but the general consensus is that the second wave is now ending in the whole country. This can help in opening up of manufacturing facilities and retail locations and return to normalcy to some extent in the coming times.
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