NEW DELHI: Partial lockdown in several parts of the country has hit automobile sales during April as factories and showrooms remained shut while those open wore a deserted look. According to data released by Society of Indian Automobile Manufacturer (SIAM), automobile shipment from factories to showrooms fell 30.18 per cent to 2,70,458 units, while exports from India increased 19.22 per cent to 5,20,289 units.
Production, meanwhile, fell 21 per cent month-on-month in April to 18,75,698 units due to voluntary shutdown of factories and muted demand, showed SIAM data released on Thursday. “Supply chain-related production challenges continue with the lockdown restrictions in many parts of the country.
The demand has been clearly impacted by the second wave of Covid-19, both in terms of low consumer sentiments and closure of dealerships due to lockdown restrictions,” said Rajesh Menon, Director General, SIAM. Domestic wholesales of passenger vehicles during the month fell over 10 per cent to 2,61,633 units even as exports grew by nearly five per cent to 42,025 units.
Industry observers say that automobile production will witness a much bigger fall in May as market leaders Maruti Suzuki and Hero MotorCorp have extended their shutdowns till the end of this week. Other manufacturers have also announced closing their factories for as many as 15 days in May.
Similarly, two-wheeler wholesale in India fell 22.82 to 15,05,653 units while its export grew by 21.10 per cent to 4,31,311 units. As the domestic market continues to face growth challenges, many automakers are eyeing foreign markets to reduce their local dependency. For example, Bajaj Auto in April clocked worldwide sales of 348,173 units of which 221,603 units – or 63 per cent – were exported.
Analysts, meanwhile, have pinned their hopes on faster inoculation to lift economic activity. “Recovery in domestic wholesales can be expected Q2-FY22 onwards, contingent to a faster vaccination drive and no new waves of Covid-19,” said analysts at Care Ratings.