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Coronavirus lockdown impact: Auto firms sitting on inventory of 3 lakh cars

BusinessToday.In     April 20, 2020

Even as automobile firms have been allowed to restart operations from April 20, there is an uncertainty owing to a much higher existing inventory. The number of vehicles waiting to be sold are higher than the average monthly sales in the pre-lockdown period. While the current total inventory stands at 3 lakh units, the average monthly sales before the lockdown was at around 2.2 to 2.4 lakh.

Maruti's inventory is nearly 1,30,000 units, but its domestic sales stand at 78.344 units, The Indian Express reported. Similarly, Hyundai has 35,000 vehicles in inventory against March sales of 26,300.

The government has asked automobile manufacturers to use their facilities to produce ventilators to boost the country's capacity of such machines in view of rising coronavirus cases. The lockdown is likely to result in a production loss of around Rs 50,000 crore to the $120 billion domestic automobile industry.

Meanwhile, India has reported 36 more COVID-19 deaths in past 24 hours taking the toll to 543 while, the total number of confirmed cases have crossed the 17,000 mark. According to latest data by the Ministry of Health and Family Welfare, there are 17,265 confirmed coronavirus cases in India currently including 14,175 active cases, while 2,546 have been cured and discharged and 1 migrated.

Also read: Coronavirus Lockdown Relaxation Live Updates: No curfew relief in Delhi; review meet on April 27; tally-2,003

Also read: Coronavirus lockdown: Labourers allowed to return to work; local authorities to help find jobs

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