Nifty auto index, which tumbled nearly 11 per cent in 2019, crashed over 31% in March
Reuters | Bengaluru Last Updated at July 14, 2020 20:40 IST I
ndia's auto sales volume will take another 3-4 years to reach 2018 levels, an industry body executive said on Tuesday, as the coronavirus-induced lockdown hurt monthly revenue and increased pressure on a sector already reeling from poor demand.
The pandemic-related disruption to the supply chain comes at a time when India's auto industry was already facing a slowdown in demand and government rules to adopt tougher emission standards forced carmakers to hike prices, driving customers away.
India's passenger vehicle sales rose 3 per cent to 3.37 million units in fiscal 2018-19, but fell by 18 per cent a year later due to weak demand and the onset of the pandemic.
The Society of Indian Automobile Manufacturers (SIAM), an industry body, said domestic car and SUV sales slumped 50 per cent in June from last year, while sales of two wheelers - widely seen as an indicator of the health of the rural economy - fell 39 per cent.
"Production has been slow to pick up due to supply chain disruption and weak demand," said Rajan Wadhera, president, SIAM.
Maruti Suzuki India, which sells one in every two cars in India, sold 51,274 passenger vehicles in June, down 50 per cent from a year ago, while Hyundai Motor India posted a 49 per cent slump, according to SIAM data.
India, the world's second-most populous country, is slowly limping out of the lockdown while Covid-19 cases continue to rise while some cities are being sent back indoors.
The country's Nifty auto index, which tumbled nearly 11 per cent in 2019, crashed over 31 per cent in March as India entered a lockdown. The sub-index was trading 2.25 per cent lower on Tuesday, amid a 1.5 per cent fall in Indian equities.