Indian automakers could report the worst demand decline in almost three decades in the three months leading up to June, with wholesale shipments and retail sales of passenger vehicles falling sharply in the quarter that coincided with the world’s most stringent and comprehensive lockdown to prevent coronavirus spread.
The market could see an overall downturn of 25-45 percent in Q1, with heavy commercial vehicles projected to see a de-growth of 50 percent, impacting demand rates in 2008. According to industry forecasts, PV wholesale figures increasing decrease from 8.73 lakh units to 1.5 lakh units. Retail sales could fall to 2.5 lakh units out of 7.94 lakh units recorded last year.
Even as the industry is looking forward to a better sales performance in June, plant level capacity utilization is just 20-40%, said Rajan Wadhera, president, the Society of Indian Automobile Manufacturers (SIAM). He added, Segments such as two-wheelers are facing a demand issue as they have now reached 65-70% production levels, while e-commerce has triggered growth for small and medium commercial vehicles.
Industry watchers claim the demand would rely on the dynamics of the economy and how the situation in Covid-19 progresses.
