Car sales after lockdown may take off and revitalize the disaster-struck automobile industry.
At first glance, this may seem impossible. We agree that the lockdown has caused salary cuts, lay offs and in some cases, even bankruptcy. So, even for the first few months after the lockdown, recovery is the best possible scenario we can envision for the economy. However, life will return to normalcy slowly, one step at a time. This means essential workers will be on the scene first following strict codes of social distancing and sanitation. Even when the public transport is open and functional, it is highly unlikely that they will be thronging with patrons for quite a while. This is why cars sales after lockdown is likely to take off.
Commuters who need immediate modes of transport will begin to explore new avenues that include purchasing a new car or a used one. While we do not expect this avenue to extend as far as premium vehicles, we can look forward to a significant boom in the sales of entry-level hatchbacks and used cars. Wuhan was hit badly and is now back on track to normalcy, so, they are ahead of us as per the corona time zone. Car dealerships in Wuhan were pleasantly surprised by the increase in footfalls and the demand for small cars once the worst of the virus had swept past. If that is anything to go by, then we can expect to see the same thing to happen in our similarly-populated country.
Also read: Zero Car Sales in April
Story: Joshua Varghese
