March 2020 2-wheeler sales may present some extremely unpleasant numbers for the manufacturers due to the COVID-19 pandemic…
March 2020 is not over yet but there are already reports coming in of massive expected sales falls. India is in a major lockdown (a first of its kind ever) of 21 days due to the Coronavirus pandemic. All the countrymen are advised to stay indoors to help controlling the spread of this contagious virus.
Two-wheeler buying sentiments have dried, footfall at dealerships is down and people are more focused on stocking and spending only on the basic needs during these testing times. As a result, two-wheeler manufacturers are feared to lose heavily.
According to an analysis report shared by Emkay India Equity Research, scooter and motorcycles makers could shed as much as roughly half of their wholesales in this month. Here are the projections..
March 2020 2-Wheeler Sales Projections
These are massive drops and will result in losses of crores of rupees. Almost all manufacturers have shut their production factories recently due to Government advisories.
Another reason of these numbers going down could be inventory correction by dealers before the Bharat Stage 6 transition. It must be known that India will move to BS6 emission norms from 1st April 2020 and no BS4 two-wheeler (or car) will be allowed to be registered from this day.
The automobile sector has gone through extremely tough times over the last six quarters due to a downturn in the market. And with the Corona outbreak, near-long term volume performance is expected to remain under pressure according to the report.