Maruti Suzuki and Hero MotoCorp have just restarted their operations despite the second wave of coronavirus cases that our country is facing. With most of the cities in our country still in a lockdown means that dealerships are not opening. Because of this people are not visiting dealerships that mean the demand for the vehicles is continuously following.
A Hero dealer said, “Many families have been impacted and there have been huge spends on healthcare. Last time, there was an immediate pent-up demand but it does not look likely now. Even online enquiries have dropped significantly,” The dealerships have an average inventory of two months but buyers interest is currently at lowest because of the coronavirus pandemic.
It is now expected that May will be a disaster for the two-wheeler manufacturers because the domestic sales are expected to fall by over 70 percent. It is still not known if this downfall will continue to next month or not. This depends if the states open up and that depends on the number of coronavirus cases.
Maruti Suzuki’s production
The sources of Autocar Professional says that Maruti Suzuki is operating at a limited production since May 17th. They are working on a single shift operation for the production plants located in Haryana. The manufacturer has a capacity of producing 7,00,000 units over two production shifts in Gurugram and 8,80,000 units over two production shifts in Manesar. Currently, Maruti Suzuki is producing 250-300 cars at all of their facilities which include, Manesar, Gurugram and Gujrat.
Major big cities like Delhi, Chennai, Bangalore and Mumbai are still in lockdown so dealerships are not allowed to open. Having said that dealerships located in Gurugram and Faridabad are open but the demand is still quite weak with cancellations happening as well, said a dealer.
Most car dealers hold 250 vehicles in their stockyard. However, now the average inventory holding has fallen to 1550 to 170 cars. The dealer also said that the people who are buying cars are buying them out of emergency or out of necessity. So, it is a mixed response. Everyone is hoping that the coronavirus infection cases fall down so that the cities can open once again and people start visiting dealerships. All this could help in increasing the sales figures in the second quarter.
People who are observing the industry says that this is the time where the export market should be the number one priority because cases of coronavirus have fallen abroad. Maruti Suzuki sold right-hand drive vehicles in Latin America, Middle East, SAARC and Africa. The vehicle range consists of Ignis, Alto, Dzire, Swift, Baleno and Super Carry cargo pick-up truck are shipped to Ethiopia, Colombia, Chile, Egypt and South Africa.
Suzuki is also making Jimny SUV that created a lot of excitement among the Indian buyers when it was first showcased at the Auto Expo 2020. It is a three-door vehicle that is currently being produced in the Gurugram plant. It has the same specifications as the Jimny that is manufactured at Suzuki Motor Corporation’s Kosai plant in Japan.