The coronavirus pandemic has absolutely decimated the new car market and its impact has been felt around the world – perhaps nowhere more than in India, with Business Today reporting that no new cars were sold in the nation of 1.35 billion people in April.
Strict lockdown measures in India have forced all car factories and dealerships to close their doors, meaning a grand total of zero new cars were sold last month.
The only road-going vehicles being sold by automakers are being exported, and they are few and far between. Maruti Suzuki exported 632 of its vehicles in April, while Mahindra and Mahindra exported 733 units throughout the month.
Among the only vehicles still being sold in India are the likes of tractors and other machinery required for the agricultural industry, which is plowing on (pun intended) as one of India’s essential sectors. Mahindra sold 4,716 tractors in April.
“At Mahindra, we are working hand in hand with all stakeholders, especially our dealer and supplier partners, to get our ecosystem started, once the lockdown is lifted. The safety of all our employees will be of paramount importance to us while resuming our operations,” chief executive at Mahindra & Mahindra’s automotive division, Veejay Nakra said. “We are hopeful that our dealerships will open soon and have stocks to cover the first few weeks of sale. In the export market we have sold 733 vehicles during April.”
While lockdown measures will eventually be eased in India, that doesn’t mean car production can quickly re-commence. Business Today reports that some automotive hubs in the country, such as the Pune-Pimpri-Chinchwad belt, have been hit particularly hard by the coronavirus and that a lack of parts at factories located elsewhere in the country will have broad impacts.
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“It is going to be tough. Assembling a car is a very complex process and involves thousands of parts. If even one part is not available then the car cannot be made,” senior vice president and director of marketing and sales at Honda Cars India, Rajesh Goel said. “We are waiting for government directions and have started preparing ourselves internally. All I can say for now is it will be a lengthy and slow process. Nobody can say when the industry will reach the situation of business as usual.”
Meanwhile, certain brands are already getting back to work. MG Motor began operations and manufacturing on a small scale at its facility in Halol in the last week of April, despite already having a backlog of 15,000 cars waiting to be delivered to customers.
