Reeling from the impact of the coronavirus pandemic and nationwide lockdown, Maruti Suzuki India suffers 46 per cent drop in domestic sales in March 2020 to 79,080 units as against 1,47,613 units in March 2019. Also, 55 percent drop in export sales to 4,712 units as against 10,463 units in March 2019.
March 2020 capped off a tough financial year for Maruti Suzuki, India’s largest carmaker reporting 18.2 percent drop in domestic passenger vehicle sales. Putting it in numbers, the carmaker sold 14,14,346 cars in FY2020 in the Indian market while in the previous financial year, total domestic sales amounted to 17,29,826 units.
Last Month, Maruti Suzuki’s parent – Japan’s Suzuki Motor – had expected its India sales to slide by a fifth in 2020 as the industry battles a steep sales contraction following decades of strong demand growth, hit by tighter credit and higher insurance costs.
The country’s automobile sector is struggling against a prolonged slowdown due to weak demand and suspension of operations with effect from March 22, 2020. This pandemic has financially impacted all their dealerships across India.
In the days gone by, the auto – manufacturers have as it is been plagued with a sharp decline in sales for several months due to subdued consumer sentiment amid an economic slowdown. Subsequently, all auto-dealers face a halt in consumer walk-ins as caution sets in due to fear of spreading of the virus due to a countrywide lockdown.
Maruti Suzuki has prioritized to ensure the safety and well-being of its employees, business partners and customers . Furthermore, the company will continue to support the Government at the Centre and State levels and follow all advisories in combating COVID-19
Auto companies Sales Performance ( March, 2020)
| Automakers | Decline in Sales(%) | Total Vehicles Sold (in units) |
| Maruti | 47 | 83,792 |
| Mahindra | 88 | 7,401 |
| Tata Motors | 68 | 5,676 |
| Toyota | 59 | 8022 |
| Hyundai | 47 | 32,279 |
The coronavirus outbreak is expected to have worsened the auto sector’s troubles in March, when they were in the midst of shifting to stricter emission norms. The ratings agency expects Indian auto sales to rise 0.5 per cent in 2020, supported by stimulus measures and discounts on new cars .
Cautious consumers are steering clear of crowded areas, including auto dealerships, while corporate demand for vehicles is weakening as broader economic uncertainties cause companies to scale back capital spending.
Industry experts feel that the impact of the increased prices may get absorbed by the market after the first six months of 2020-21.
~ By Nikita Baid
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