Impact of COVID-19 on car industry in 2020

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The Covid-19, an unexpected pandemic has changed the daily living pattern of the people around the world. It has affected all types of industries and businesses globally. To save the lives of people and restrict the spread of the pandemic many nations announced lock down for a long time. In India the lockdown days prolonged for nearly three months and the withdrawal steps were taken only step by step. This affected all the industries and businesses and resulted in the fall of profit in the financial year of 2020-21.

As all the units including manufacturing, logistics and sales were closed down for three months, the month of April witnessed zero car sales. By May, many dealers resumed partial operations and completed pending deliveries. Only by June onwards, the car sales started picking up pace.

To attract the customers towards the car sale, easy finance options from financial institutions where allotted vastly. Even though, the sale has improved better than the previous months, overall car sales in 2020 was low compared to 2019.

In 2020, October was the month that had most sales of this year. The festivals like Navratri and Diwali in November increased the number of sales occurred in all the car companies in India. But even then, they were lower as compared to previous years or October of 2020.

In the financial year of 2020, Maruti Suzuki, Hyundai and Tata Motors are claiming the first, second, and third position in terms of car sales respectively as they are offering more budget-friendly options. The price hikes of the exclusive models and poor customer sentiments have boosted the business base level companies like Maruti, Suzuki, Hyundai and Tata.

The year 2020 also witnessed some recent launches of compact SUV segment from Kia Motors and Hyundai in India. Maruti Suzuki continues to lead with a majority share in the Indian market with their popular models like Swift, Baleno, Ertiga and the Wagon R.

The South Korean car manufacturer, Hyundai competes with the market leader, Maruti Suzuki by a strong product line up in the A, B, Compact SUV, and the SUV segments. Along with the popular sellers for the company like Creta, Venue, Grand i10, and the Elite i20, the company launched the third-generation i20 in November. It boosted the sale with over 30,000 bookings in just 40 days.

With models like Altroz, Tiago, Tigor, and the Nexon, Tata Motors is performing well. Kia Motors, new comer in the Indian market holds the fourth position in terms of cumulative sales even after having three models in the product line up – Sonet, Seltos, and the Carnival.

It is expected to have a boost in the new fiscal year 2021-22 that the auto industry might witness a minor growth in sales as the pandemic will decrease after the launch of vaccines globally. Maruti, Hyundai, Tata and Kia are expected to be the leading companies in the next year too with new launches of various companies and models.

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