Maruti Suzuki Sales Has Fallen – COVID-19 Outbreak
Maruti Suzuki Sales Has Fallen
Maruti Suzuki is one of the biggest carmakers in India, and the sales of this company has fallen to 16% comparing to the production and sales of last year as auto industry is going through a pressure because of the economic pressure and reduced demand, which has occurred because of coronavirus outbreak.
Among the entire car market of Indian passengers, Maruti alone has around 50% shares. The year ended in this March 31, it sold 1.56 million vehicles comparing to the previous year when the number was 1.8 million. The transmission and the outbreak of coronavirus have affected more than 800,000 people throughout the world and have caused over 38,800 deaths. In India, the virus has caused 32 deaths while 1251 people have shown positive result of COVID-19.
To control the transmission of coronavirus, the Indian government has ordered the lockdown of the entire country for 21 days. This order has forced the carmakers like Mahindra & Mahindra, Maruti Suzuki, Ford Motor Co., Hyundai motor Co., and Toyota Motor Corp to stop their manufacturing process. The Society of the Indian Automobile Manufacturers has estimated that the plant closures by the automakers as well as the auto part makers are hoped to guide a regular revenue loss, which can be more than $305 million (23 billion rupees).
Maruti Suzuki is owned majorly by the Suzuki Motor Corp of Japan, and in March, it sold approximately 83,792 units comparing to 158,076 units a year ago. However, Maruti said that the numbers were not so comparable that it had to stop the entire operation system from the 22nd March because of the order came from the government.
Shashank Kanodia, an auto analyst from the ICICI Securities told to an interview that the closing began at the last week, but the reduction and losses was so high even that wasn’t so comparable. He also said that if that was the trend, then they could expect to be surprised negatively by all the automakers.