Automobile sector in India on the road to recovery
The lockdowns imposed due to coronavirus pandemic played havoc with the economy. Moreover, sectors like automobiles and electronics were mostly affected due to manufacturing being shut down for a long period of time. With lockdowns being lifted, manufacturing units have started functioning with social distancing measures and SOPs in place to mitigate the risk of spread of the virus.
The Indian automobile sector is drawing a close parallel with the recovery trend seen in China. If the sale in April was nil for most manufacturers following stringent lockdown restrictions, almost all manufacturers reported 80 to 90 per cent dip in domestic sales in May.
In June, however, the pace of decline slowed down and Maruti Suzuki and Hyundai Motors that together command nearly 70 per cent market share, announced 53 and 49 per cent decline in sales over that in June 2019. So, there has been a recovery in month-on-month numbers. While Maruti announced a 3.8 times jump in June over May, Hyundai too reported over three times rise in sales in June.
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