Second wave hit the market just when it had begun to recover from its worst-ever slowdown Published: June 06, 2021 13:05 Bloomberg Mahindra s XUV 300 crossover. India s Mahindra will invest 30 billion rupees ($410 million) in EVs in the near term and launch six models in the next few year. Image Credit: Supplied
Mahindra & Mahindra Ltd. says India car sales will take almost another year to return to pre-pandemic levels after a resurgent outbreak shuttered auto plants and showrooms.
The rebound may happen faster as India is starting to see a huge flurry of activities over the last week as infections decline and lockdowns ease, Mahindra Group Chief Executive Officer Anish Shah said in a Bloomberg Television interview Thursday. But we have to wait and see whether that really takes off. If we go back to 2019 levels I think that would likely be starting around April next year.
June 01, 2021
Limited mobility impacts segment
The Covid 19 pandemic has severely affected domestic sales in the three-wheeler auto segment. According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic sales for three-wheelers are almost at a two-decade low. Sales in 2020-2021 were below the domestic sales in the 2002-2003. Experts suggest that Covid 19, and consequent lockdowns impacted micro-mobility of people creating a negative impact on the rickshaw industry, which is the largest customer segment in this space.
The three-wheeler segment is made of two categories: the passenger segment and the cargo segment. The decline in overall numbers is largely due to a decline in sales in passenger vehicle segment. According to global analytics company, Crisil, 82 per cent of the sales in this segment are in passenger vehicles while 9 per cent are in the cargo segment.
While all segments of the automotive sector have been negatively impacted due to the pandemic, the passenger commercial vehicle (CV) segment has been hit particularly hard.