The production of the auto sector may be affected if the lockdown and curfew imposed in various states amid the second wave of COVID-19 in the country.
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The coronavirus wreaks havoc across the country. State governments have imposed lockdown to prevent the spread of infection, but this may have an impact on the auto sector. Apparently, there has been a decline in sales of many auto companies in April compared to March. If such a lockdown is extended, the sales of these companies will be affected. Maruti Suzuki also agrees.
The country’s largest carmaker Maruti Suzuki India said that the lockdown and curfew imposed in various states could affect production in the midst of the second wave of COVID-19 in the country. The car company, which holds a 50 percent share in the domestic passenger vehicle segment market, says the lockdown will affect the functioning of its sales network, which is likely to affect its manufacturing activities.
Fear of production falling
Asked whether the company’s production activities are expected to be affected amid the increase in COVID-19 cases, RCI Bhargava, the chairman of MSI, told PTI-language, “The continuation of the lockdown may be affected because then Sales centers will remain closed. Asked whether the production could be reduced by up to 50 percent due to bottlenecks related to the epidemic, Bhargava said, “We do not know what will happen next.” It all depends on the continuation of it (lockdown). It has been a few days now.
Maruti Suzuki sales were down in April
Maruti Suzuki India (MSI) said that due to the impact of the Dispatch due to the COVID-19, its total sales fell by four per cent to 1,59,691 units in the month of April from 1,67,014 units in March this year. The company could not sell any unit of the vehicle in April last year due to the nationwide lockdown in the domestic market. MSI said its domestic sales last month were 1,42,454 units, which is eight per cent lower than the sales of 1,55,417 units in March.
Sales of mini cars, including Alto and S-Preso, rose two percent to 25,041 units in April from 24,653 units in March. Vehicle sales in the compact segment, including Swift, Celerio, Ignis, Baleno and Dzire, fell 12 percent to 72,318 units in April from 82,201 cars in March this year. In March this year, sales of the mid-size sedan Ciaz dropped by four percent to 1,567 units as compared to 1,628 units. MSI said that utility vehicle sales including Vitara Brezza, S-Cross and Ertiga declined by three per cent to 25,484 units from 26,174 units in March.
(With language input)
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