Here’s How Much COVID-19 Has Affected Car Sales In March

The start of April finally sees the 2019-20 automotive season that occurred from April 2019 to March 2020 come to a close. However due to the coronavirus causing lockdowns in many countries including India, the final March round definitely caused manufacturers to take a hit in addition to the slowdown. But how much has it really hit the carmakers? Here’s a closer look at the final round report from March 2020. 

The Winners

During the final March 2020 round, the sales standings indicate a major drop in points scored in the auto industry compared to 12 months ago, with falls ranging from 50 per cent and above mostly due to the lockdown. However, there were some positives when it comes to market share. The biggest winners out of this were Maruti Suzuki and Hyundai. While third placed Kia Motors can’t be compared since it debuted in India much later in 2019, the carmaker has garnered the most attention by pulling out a decent number of sales despite the lockdown with the Seltos and only very recently, the Carnival MPV on offer. All this has propelled Kia to the third largest car maker in India in terms of market share, at 6.1 per cent overall. The cars that helped the winners this month ranged from the Maruti Suzuki Baleno, Hyundai Creta, Venue, to the Kia Seltos. 

The Losers

As there are those who weren’t affected heavily, there were some who were hit the hardest with the average drops ranging from 60 per cent and above. The biggest losers to come out of this month were Tata Motors, Honda and Mahindra. As a result, they also suffered a drop in market share. Some cars that contributed to these losses were the Honda City, Mahindra XUV300, XUV500 as well as the Tata Tiago and Tigor. 

The Reasons

While the final round’s abysmal points accumulation can be given a bit of slack due to the lockdown, there are other factors as well that have contributed to this. It started off with carmakers having to convert their entire model lineup to BS6 compliance ahead of the initial deadline of March 31 (now postponed to April 24). Other reasons include the rise of ride share alternatives, stricter lending guidelines, as well as India’s rushed EV plan.

Expect the new season to also face a similar scenario of low sales for at least a couple of weeks post the lockdown being lifted, which is tentatively April 14, 2020. Taking this timeframe into account, it could take until the end of May or even June until we start going back to normal figures, especially with launches like the 2020 Honda City and the S-Cross Petrol.