COVID cripples city car sales

Auto dealers are hoping for good sales in the coming holiday season

The second wave of the COVID-19 pandemic and the lockdown that followed severely affected car sales in Mysuru. While all of the major auto dealers reported good sales after Wave 1 when the market rallied, the numbers simply plunged into Wave 2, wiping out sales in April, May and quite possibly June as well.

Prime Minister Ganapathy, Vice President of Mandovi Motors, speaking to Star of Mysore, said, “We keep our fingers crossed and sincerely hope for good sales once the lockdown is lifted. Last year, the second half of March and April 2020 was a month without a sale. In fact, in the history of the auto industry, this was the first time we heard of the zero bill month. But after May we started to operate and things started to improve and sales improved although it took a few days to stabilize.

Withdrawal of used sales

“The market recovered and towards the end of last year we were doing extremely well as public transport was seen as a risk and everyone wanted their own mode of transport. Now all of a sudden a void has created with the second wave. Even if containment is open from June 21, business will not start right away. It will take about a month to streamline although we have our customers with pending reservations awaiting delivery, ”Ganapathy added.

“Due to the pandemic, at least 15-20% of customers are postponing their purchases of new cars and many are switching to the used car. Maruti True Value our used car sales segment has recovered very well and we are unable to meet the requirement because the people who have cars are not selling them and not buying new ones. “, He noted.

Customer sentiment is important

Urs Kar general manager Kanthraj Urs also said sales have stalled for the past 60 days. “After last year’s lockdown we were wondering if the industry itself would survive or not, but luckily sales after the lockdown were good because we had good pent-up demand and we grew in all the brands that we represent. Again this year there is a drop in sales and we don’t know how things are going to turn out although we are sitting on good bookings. It all depends on the feelings of the customers, ”he said.

Compared to last time, the impact of COVID in Wave 2 has been harsh and so there is uncertainty. “We just wish things would start to improve. The Mysuru market size is around 1,200 cars and two-wheelers are around 7,000 across all categories and at present it is zero as all dealers together are said to have sold around 20 cars. Of course, the lack of sales will also have an impact on the government, as the auto industry gives 28 percent of the GST. Additionally, road tax and overall revenue loss will be around 40-45 percent of the overall sale we make. Mysuru is a Rs. 100 crore market, ”Kanthraj Urs said, adding that the pandemic has improved the resale value of used cars and was a win-win situation for both seller and buyer.

Falling sales of Ashada

Shah Automotives director Mayur Shah said the fiscal year from April 2020 to March 2021 was a combination of good and bad. “The volume of sales and turnover was significantly lower and now it’s zero. We have huge cost implications on the inventory we have. Containment or no containment, sales or no sales, we have to pay bank interest. But last year Honda has perfectly matched the demand and supply equation and we had the least inventory and paid less interest to the banks, ”he noted.

But the service section took a hit as most customers didn’t show up for service and there was less admission. “Inventory and wages were the two biggest issues, but we got it right. For now, even though the lockdown is lifted from June 21, we will not have good sales because the Ashada month starts on July 11 and there will be no more sales for a month. We have a very short window from June 21 (in case the curbs are lifted) until the start of Ashada. We hope that sales will resume after Ashada when the festival season arrives, ”he said hopefully.

Production constraint

L. Sunil Gowda, Managing Director (Owner), Honnasiri Nissan and Director of Operations Divitha Ganapathy said the pandemic has hit the industry hard. “We have a new Nissan Magnite brand that has increased sales as bookings have exceeded expectations. But because of the lockdown, production is the constraint – the reservation rate and the production ration don’t match, ”they said.

“In addition, variants that customers reserve are not produced and variants produced are not purchased by customers. Sales have been hit hard this year compared to 2020 as people save money for emergencies and take a cautious route. We need at least a month or so after the lockdown is lifted for sales to rebound, ”said Divitha Ganapathy.

Good demand but no supply

Cauvery Ford Senior Manager (Sales) Sujith said that although reservations were very good, they were unable to deliver the vehicles due to the pandemic. “The demand was there because there were good bookings, but due to production and supply chain issues we were unable to meet the demand as it takes at least three months for a vehicle to be book. After last year’s lockdown, sales picked up very well and there was no sign of the second wave. Now people are cautious and the threat of a third wave is too great. We really hope for good sales, ”he said.

“Now there are no more sales due to the foreclosure and if we open on June 21 there is Ashada and the feelings of customers should be respected. We hope the market will pick up again during the next festival season. It all depends on the third wave and the reality of the threat. But we hope for the best and optimistic, ”added Sujith.

Product range, quality makes the difference

Among automakers, Hyundai is doing extremely well with a line of products that meet customer expectations and offer value for money, said Ajay Singh, director of sales and marketing at Advaith Hyundai. “Of course, during the lockdown there is no sale. Before and after the pandemic, we also had good bookings, mainly due to the diversity, quality and lack of maintenance of the products. Yes, due to the pandemic and the supply chain issue, the waiting period for vehicles has increased, ”he said.

In the post-COVID world, people who want to switch from two-wheeler to four-wheeler due to the risks of public transport prefer Hyundai and models like Nios, Santro, i20, Creta and Venue have achieved good results. sales. “The SUV market has just exploded and today we launched Hyundai Alcazar, a 7-seater SUV and the response is very good with online reservations where deliveries will be made after the pandemic. We are the only company to offer a range of products from Rs. 6 lakh to Rs. 35 lakh and we expect good sales after the lockout is lifted, ”added Ajay Singh.

Due to the pandemic, at least 15-20% of customers are postponing their purchases of new cars and many are switching to the used car. Maruti True Value, our used car sales segment, has recovered very well and we are unable to meet the requirement.

– PM Ganapathy, vice-president, Mandovi Motors

The lack of sales will also have an impact on the government as the auto industry gives 28 percent of the GST. Additionally, road tax and overall revenue loss will be around 40-45 percent of the overall sale we make. Mysuru is a Rs. 100 crore market.

– Kanthraj Urs, Managing Director, Urs Kar

We have a new brand Nissan Magnite which has increased its sales as bookings have exceeded expectations. But due to foreclosure, production is the constraint – reservation rate and production ration do not match. “

– L. Sunil Gowda, Managing Director (Owner), Honnasiri Nissan

Now there is no more sale due to the lockdown and if we open at all on June 21 there is Ashada and the feelings of the customers should be respected. We hope the market will pick up again during the next festival season. We hope for the best and optimistic.

– Sujith, Senior Manager (Sales), Cauvery Ford

During containment, there are no sales. Before and after the pandemic, we also had good bookings, mainly due to the diversity, quality and lack of maintenance of the products. Yes, due to the pandemic the waiting period for vehicles has increased.

– Ajay Singh, Director, Sales and Marketing, Advaith Hyundai


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *