The 2nd wave of the Covid-19 virus has affected the life and businesses of many. The automaker’s industry was also affected faultily because of the lockdown permitted in most states in India.
Hit by the Covid-19 second wave, wholesale despatches of automobiles have gotten impacted, with most automakers reporting a decline compared to March (sales growth cannot be compared year-on-year because a nationwide lockdown was in effect in April 2020). According to reports, while companies say the demand for vehicles remains strong, they foresee challenges to supply chain, dealership activity and customer movement in the coming months, given the localised restrictions imposed by states in the wake of the second wave.
Due to the lockdown increase in the unemployment rate, the demand for the automobile sector also declined. Given the data, the automobile sector may have faced a decline in sales but the automakers expect a quick recovery in the sale of vehicles once state governments start lifting restrictions imposed to contain the spread of coronavirus with a steady decline in covid cases. Some automakers have resumed production, though with single shifts, from mid-May, following a steady decline in covid cases. A strong recovery is expected once restrictions are lifted as demand for personal mobility has been reinforced after the second covid wave
The loss beared by the car dealer during the lockdown may have been high but the value of the cars has increased during this period. Now that the lockdown restrictions have been lifted people may invest in the automobile because of safety reasons, there can be high demand for automobiles as people are avoiding public transport because of the rush and keeping their safety in mind. The automobile industry may see a spike in sales after this lockdown restriction is lifted.