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Covid-19 Lockdown: Upto Three lakh automobiles ready to be bought, larger than common month-to-month gross sales

Passenger automobiles mendacity with main producers greater than their gross sales in March.

There’s a cause why car corporations are not sure of beginning operations from April 20 regardless of the federal government permitting them to take action. The whole stock of passenger automobiles presently stands at round 2.6-Three lakh items, which is a tad larger than common month-to-month gross sales the section was clocking earlier than the lockdown at round 2.2-2.four lakh. For all of the PV gamers like Maruti Suzuki India, Hyundai Motor India, Tata Motors, Mahindra and Mahindra, and Honda Cars, the present stock is much larger than their month-to-month gross sales throughout March.

For occasion, Maruti’s stock – together with its stockyards and supplier networks – stands at round 130,000 items whereas its home gross sales throughout March was 78,344 items. Similarly, Hyundai’s stock stands at 35,000 towards March gross sales of 26,300. In the case of Tata Motors, the stock is round 20,000 towards March gross sales of 5,714. For Mahindra and Mahindra, the stock is round 15,000 whereas March gross sales stood at 3,383 items. In the case of Honda Cars, the stock stands at 8,000 items whereas March gross sales had been at 3,697 items.

“We started the transition to BS VI from April 2019. We stopped the production of BS IV from January 2020. So, there is no stock of BS IV. As regards network stock, we have close to 130,000 cars. We were prepared much in advance and were bringing out one model every month of BS VI-compliant cars,” a Maruti Suzuki India spokesperson stated. According to a Hyundai Motor India spokesperson, “We have stopped making BS IV cars many months ago and are making only BS VI cars. We do not have any inventory of BS IV cars in the plant at all. As for BS VI cars, we are still in the process of stocktaking.”

According to Rajesh Goel, Senior Vice-President and Director (advertising and gross sales), Honda Cars India, “Considering the challenges of last year, in September 2019, we had taken a very tough and painful decision of cutting down our annual production by 40%. The decision however difficult, proved to be timely and as a result we do not have any BS IV stock. Amidst the model-wise sequential transition to BS VI which was underway, our factory inventory was less than two days at about 700 units when lockdown was announced.”

Industry executives, subsequently really feel that if supplier community and retail showrooms aren’t allowed to function then producing automobiles wouldn’t be of any that means. As Maruti Suzuki India chairman RC Bhargava says, “Produce for whom?” There’s an added uncertainty of manufacturing extra with out with the ability to promote and subsequently including to stock as a result of after the lockdown gross sales are anticipated to be tepid due to falling revenue as a consequence of wage cuts and layoffs. However, some executives really feel that demand for small automobiles could enhance as a result of folks could keep away from public transportation.

Another drawback which is appearing as a hindrance for auto corporations to start out manufacturing is with regard to their distributors. Every agency must first assess the place its distributors are positioned and whether or not they can function inside the situations stipulated by the federal government. If the distributors or their workers are in pink zones (hotspots) then functioning can be an issue.

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