Car trade has plummeted in India, as the May 2020 car sales saw just over 36,000 recorded in the month.
The COVID-19 pandemic has shaken up the automotive scene, just like it has every other aspect of daily life. The effect on the lockdown and closing of international borders has seen car sales numbers take a sharp nosedive, and the figures for May 2020 car sales were no different. The Indian market recorded 36,697 sales for the month, which means compared to this period last year, the market has seen a drop of close to 85%. For context, the sales for May 2019 were just shy of the 2.4 lakh unit mark.
The reasons for this massive drop in May 2020 car sales are all linked to the pandemic, of course. Factories have been shut and are only now starting to open up. The same is true for dealerships as well. And even with online purchase options available to the public, the financial uncertainty of these times have made the public a lot more hesitant to spend. While it is expected that the lifting of the lockdown will result in an upward spike in sales, especially since people will eschew public transport and ride-sharing solutions. However, on the flip side, production lines will be affected by a lack of overseas components, so it is difficult to predict to what degree the health of the auto industry will improve in the coming months.
