Udayavni Special

Domestic auto sales may drop up to 25 pc this fiscal: MG Motor India

PTI, Apr 19, 2020, 11:59 AM IST

New Delhi: Hit by the coronavirus pandemic, auto sales in India could drop by up to 25 per cent in the ongoing fiscal from an already low base of the previous year, according to a top official of MG Motor India.

With the health crisis likely to peak in April-June period, the expectation is that sales in the quarter will decline by as much as 40-50 per cent.

“The worst case, as I see for the industry, is may be a 25 per cent decline this year…the best case probably is 11 per cent down,” MG Motor India President and Managing Director Rajeev Chaba told PTI.

Commenting on how he sees the industry coming out of the crisis, Chaba said, “In April, May, June, my feeling is that in any scenario, industry will be down by at least 40 to 50 per cent.”

Stressing on how crucial the April-June period is, he said, “You will see more uncertainty…this is the time where you will see the peak of cases (coronavirus infection). Hopefully by June, we start seeing light at the end of the tunnel and we can see how this whole thing will be coming to an end. I hope we go through this quarter.”

Elaborating on the challenges ahead for the industry, he said, “In July to September I would like to believe that the economy will start limping back to a new normal economy. Let’s say 70-80 per cent of normal or 50 per cent of normal, and it will start limping back.”

So at that point of time, Chaba said, “The huge issue for most of the industries, including auto industry is going to be harder to generate the demand, because most of the consumers may not be in the right frame of mind and are not going to buy things like car.”

At that point, he said, the question of demand stimulation will arise for which the industry would need government support. “Here I think the government may have to move into the next mode. Also, along with that the industry as well as government have to do something on demand stimulation so that the customers are coming to a better frame of mind and they move on to new phase of their lives,” Chaba said.

When the festival season starts in September-October, Chaba said, “Hopefully, we have come out of, the majority of the issues are over, still the virus would be there and precautions, everybody has to keep. That’s the new normal. I think by festival time we would at least come back to the last year level but last year was already low base for the industry. At that low base we can come equal for the industry.”

According to industry body SIAM, in the fiscal ended March 31, total vehicle sales across categories in India were down 17.96 per cent at 2,15,48,494 units as against 2,62,66,179 units in 2018-19.

Similarly, passenger vehicle sales were also down 17.82 per cent at 27,75,679 units in FY20 as against 33,77,389 units in FY19.

Hoping that by 2021 things will be better for the industry, Chaba said,”I think it should start taking off from January February onwards next year. So this is how I see it.”

On steps taken by the company to endure the impact of the health crisis, Chaba said, “We are calibrating our business. We are doing a lot of planning and forecasting what can be the various scenarios of the market in the next nine months to 12 months. Accordingly, we need to have a new cost structure in place so that we can survive.”

He, however, asserted that “even in that worst case, we have given a pledge to our employees that we will not release or will not do a single job cut. All employees are safe in our company, because that’s also part of community.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

K’taka COVID-19 update: 4025 new cases, 7661 discharges, 45 deaths on Oct 28

Udupi: DC Jagadeesh instructs officials to prepare database for COVID-19 vaccine

Parliamentary panel questions Paytm about Chinese investment, storing of data in servers abroad

Pak minister admits Pakistan’s role in Pulwama terrorist attack in J&K

Economic recovery faster than expected, confident of meeting $5-trn target by 2024: PM

Court orders probe against Kangana, sister over social media posts

Sullia: Bikini photoshoot at ‘sacred’ waterfalls irks locals

Related Articles More

Mahindra Electric launches new cargo 3-wheeler Treo Zor

Kinetic Green launches electric cargo 3-wheeler ‘Safar Jumbo’

Hero MotoCorp, Harley-Davidson join hands for Indian market

Maruti, Microsoft develop tech for testing applicants seeking driver’s license

Ducati commences pre-bookings for BS-VI version of Multistrada 950 S


Collision guaranteed in a blink at this dangerous road turning

COVID19 | Peoples take on reopening of schools | Udayavani

Gadaga Accident victim arrives to vote in ambulance

Mangalore Dasara -2020 Highlights

Paschima Jagara Pooja starts at Sri Krishna Math

Latest Additions

K’taka COVID-19 update: 4025 new cases, 7661 discharges, 45 deaths on Oct 28

Govt Bans Export of Onion Seeds Amid Rising Prices in Domestic Markets

Udupi: DC Jagadeesh instructs officials to prepare database for COVID-19 vaccine

Delhi Riots: Court Dismisses Bail Plea of Accused in Murder Case

Parliamentary panel questions Paytm about Chinese investment, storing of data in servers abroad

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.