Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now
Budget 2023
Budget 2023

Automakers get into rescue mission as more than 300 dealers shut shop in FY20

Maruti, Tata Motors, Honda Motorcycle offer direct loans, higher margins, and longer credit period to help dealers tide over Coronavirus-induced crisis. Zero retail sales, lower margins and new dealerships have forced many dealers to down shutters.

August 27, 2020 / 05:23 PM IST

Car and bike manufacturers like Maruti Suzuki, Tata Motors, and Honda Motorcycle and Scooter India (HMSI) are playing a saviour’s role to prevent auto dealers from becoming extinct.

The going has been tough for the dealers for quite some time now.

In April 2020, retail sales fell to zero for the first time after the country-wide lockdown due to COVID-19. The community was already battered, and FY20 turned out to be one of their worst years, with volumes declining 18 percent to 21.54 million units, compared to FY19.

So much so that during FY20, more than 300 dealerships downed shutters permanently.