Lockdowns, rising cases hit auto sales
Mumbai AUTO sales in April have started showing the impact of lockdowns that has put the brakes on the recovery of the sector, a report said on Tuesday.
With more States announcing lockdowns and some more OEMs expecting to go for maintenance shutdowns, as many as 50 per cent of the dealers are likely to be impacted by the move, it added. However, the full-year prospects remain positive if the Covid wave recedes in the April quarter and the vaccination drive goes as planned, brokerage firm Centrum said in the report.
The opportunity cost was higher in April as it had a mini-festival period and weddings that fell after Holi. Two-wheeler sales were higher in this period and hence channels were stocked up. However, the lockdowns happened in the States that contributed 25-30 per cent of the sales, it added. Centrum said the passenger vehicle sales started in the month with low inventory and hence stocked up before the production shutdowns in May.