Automobile major Maruti Suzuki has managed to sell 18,539 units during May 2020, registering a decline of 89 percent compared to May 2019. The unprecedented decline in automobile sales during the first quarter of the current financial year due to COVID-19 lockdowns can have a major impact on the automobile companies which were already facing tough times. Indian automobile sector has been a major contributor to Indian economy for the last few years and the government had offered a few options to the companies to improve their financial health. The sales data for June will be important as automobile industry experts feel that we could see strong growth in the volume.

Maruti started operations at its Manesar facility on May 12 but dealerships across the country opened as per state regulations. Many dealerships are still waiting for government approval to start operations. New Delhi announced today about reopening of 95 percent of business ventures. Chief Minister Arvind Kejriwal has sealed the border in order to avoid any infections from outside.

Automobile companies reported zero sales during April 2020 as all the dealerships and manufacturing facilities were locked. As the showrooms started opening gradually during the last week of May, we could expect better sales volume during June. As per reports, Maruti has started registering 5,000 – 6,000 bookings per week. However, the company managed to register an average of 4,500 vehicle booking per day before COVID-19 lockdowns. Automobile companies might take few weeks to get back to the levels before COVID.

However, it is yet to be seen how much decline the companies will face on a yearly basis as the economy will face decline due to COVID-19 pandemic.