Maruti chairman expects car boom post the lockdown gets lifted.
The COVID-19 pandemic is destroying a lot of industries as production is standstill, specially in the automotive space. Car sales have slumped 52 percent last month.
However, a sharp spike in car sales is expected post the lockdown is lifted. This is what Maruti Suzuki chairman R C Bhargava believes. He says if buyers become apprehensive of sharing space, it will increase demand for vehicles.
As social distancing will become a common practice after the lockdown is over, some people would prefer commuting in their personal vehicle.
The comments by the Maruti Suzuki chairman are backed up by the latest trend in China. Car dealerships in China are witnessing a boom in daily sales. Customers are motivated to buy personal vehicles as they believe public transport isn’t safe anymore.
Maruti Suzuki foresees less number of employees allowed after the operations restart. The carmaker will adjust the production capacity accordingly.
Currently, over 4,00,000 employees at dealerships are at risk of losing their jobs. The automobile industry is witnessing a loss in production of Rs. 2300 crores per day.
Maruti Car Sales
– Car boom possible post lockdown in India
– Social distancing to become a common practice
– There will be increase in demand for personal mobility
Source – LiveMint.com