Top

Automakers fear dent in sales as Covid surges

Automakers fear dent in sales as Covid surges
x

Automakers fear dent in sales as Covid surges 

Highlights

Lockdowns make it physically not possible to deliver

ADVERTISEMENT

New Delhi: Leading automobile companies like Maruti Suzuki India (MSI), Toyota Kirloskar Motor and Honda Cars fear dent in sales as Covid-19 cases surged across the country.

The country's largest carmaker MSI stated that the auto sales were correlated closely with economic growth and also (being a discretionary purchase) with the consumer sentiment. "The Covid-19 situation deterioration is obviously a negative for customer sentiment and thus has a negative impact on sales," MSI Executive Director (Sales and Marketing) Shashank Srivastava said when asked about the impact of second wave of the pandemic on the company's sales. Lockdowns make it physically not possible to deliver cars but even the deterioration in Covid-19 situation without lockdown also psychologically dents consumer propensity to buy, he noted. Similarly, Toyota Kirloskar Motor (TKM) Senior Vice President 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.

Show Full Article
Print Article
Next Story
More Stories