Automotive companies have started FY21 on a luckless note, reporting zero sales in April as manufacturing facilities remained closed following full lockdown orders from the central government.
For the first time, over 100 factories of automotive companies that make scooters, motorcycles, cars, electric vehicles, trucks and buses did not produce even a single vehicle during the entire month of April. Until mid-March, these factories were buzzing with activity producing over 1.44 million units before lockdown was announced.
Maruti Suzuki (MSIL), Hyundai, Mahindra & Mahindra (M&M), Toyota Kirloskar and MG Motor informed through individual press statements that following the compliance orders from the government there was zero sales in April.
"Maruti Suzuki had zero sales in the domestic market, (including sales to OEM), in April 2020. This was because in compliance with the Government orders all production facilities were closed. Meanwhile, following resumption of port operations, the first export shipment of 632 units was undertaken from the Mundra port, ensuring that all guidelines for safety were followed," MSIL said.
Also Read | Lockdown impact: Maruti Suzuki sells zero units in domestic market in April
The companies are now gearing up to restart operations for which discussions with factory heads, parts vendors, state administration, dealers, services centres, supply distribution and retail customers have begun.
"At Mahindra, we are working hand in hand with all stakeholders, especially our dealer and supplier partners, to get our ecosystem started, once the lockdown is lifted. The safety of all our employees will be of paramount importance to us while resuming our operations. We are hopeful that our dealerships will open soon and have stocks to cover the first few weeks of sale. In the export market we have sold 733 vehicles during April," said Veejay Nakra, Chief Executive Officer, Automotive Division, Mahindra & Mahindra.
Automakers are hoping to cash in on some pent-up demand coupled with demand expected to arise due to aversion from using public transport.
A survey done by Cars24 covering 3,600 respondents showed that 42 percent felt that they now need to buy a car for the family while 53 percent of the respondents were thinking of buying one within next 6 months. Several auto companies have thus made the vehicle buying process more convenient by allowing customers to not just select vehicles but purchase them using the online medium.
"There has been some movement in the market as dealers are receiving some enquiries. We have made provisions to entirely digitize the sales process wherein we have a 360-degree product views offering a virtual tour of the vehicle, select financing options and even receive a quotation online. We have also made provisions for delivering the vehicle to the customer's doorstep upon the completion of purchase," said Naveen Soni, Senior Vice President, Sales & Services, Toyota Kirloskar Motor.
SAIC-owned MG Motor India, which also recorded zero retail sales for April said it started limited operations at its facility in Halol, Gujarat, in the last week of April. The company hopes that the production will ramp-up in the month of May and is working on the local supply-chain support.
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