NEW DELHI: With production facilities remaining closed in April as part of the nationwide lockdown, several auto firms have reported zero domestic sales during the month.
India’s largest carmaker Maruti Suzuki (MSIL) on Friday reported zero sales in April, the first time ever it reported zero sales in a month. In April 2019, the company had sold 1,34,068 vehicles in India.
The carmaker, however, exported 632 units, following resumption of port operations. “The first export shipment of 632 units was undertaken from the Mundra port, ensuring that all guidelines for safety were followed,” MSIL said.
India continues to remain under a nationwide lockdown since late March to control the spread of the Covid-19 pandemic. Automakers have been hoping that operations could be resumed smoothly from May 4, but with the government on Thursday extending the lockdown by two more weeks, the sales could be hampered significantly in May as well. The lockdown restrictions will be harsher in metro cities as they fall under the ‘red zones’. India’s top 10 cities account for more than half the cars sold in the country.
Other carmakers too reported zero domestic sales in April as production facilities and dealer showrooms remained shut. Hyundai Motor India said it registered export of 1,341 units in April 2020, but zero domestic sales.
Mahindra & Mahindra too sold 733 vehicles in the export market, but domestic sales were completely impacted.However, tractor sales did see some action last month, as government allowed agriculture activities in full swing from April 21. M&M sold 4,716 units of tractors last month, as against 27,495 units during April 2019.
Hemant Sikka, president (farm equipment sector), M&M, said the lockdown extension impacted the business, with dealers partially open for just a few days. “Going forward, several positive factors including a good Rabi output, opening of procurement centres by the government, indication of good crop prices and high reservoir levels augur well for tractor demand. However, the rate of improvement will depend on how quickly the on-ground sales operations,including the start of NBFCs, are normalised, following the relaxation of the lockdown,”he said.