After hitting a rock bottom low on the monthly sales charts in April 2020, all carmakers, including Hyundai Motor India Ltd, are now slowly but surely gaining sales momentum
The ongoing global crisis has affected all walks of life, including the auto industry. The lockdown that was enforced to curb the menace of the formidable virus led to closure of car dealerships and production plants, which, in turn, translated into the sales hitting an absolute zero in the month of April 2020.
Last month, most carmakers resumed operations through select outlets. While there is a definite consumer interest even at a time of panic, the car sales are still many times lower than what they were a year back.
With this, it’s clear that the Indian auto market could take a while before it can recover from this crisis. However, SS Kim, Managing Director, Hyundai Motor India Ltd, believes that the Indian auto sector will recover faster than others. He believes that the car market will witness a revival in the festive season, though the demand will recover totally only by the next year.
The executive believes that the Indian auto market is much more resilient than others. Hyundai Motor India Ltd is currently following two staggered shift operations. Moreover, the company is carefully observing the situation and could consider scaling up the operations based on the market response.
Hyundai Motor India Ltd has also been assisting its supply chain partners by helping them acquire the permissions that are required to be obtained from the authorities to resume operations. The company is even helping its partners follow the government-mandated safety guidelines. Moreover, the carmaker has tied up with the local authorities to make sure enough provisions are being availed to migrant workers. This, in return, has ensured smooth operation with the restart of the vendor facilities.
Kim believes that the Indian auto market will recover with high traction for the compact and used car segments. This is something that has been said even by executives of other manufacturers. The increased stress on social distancing and the resultant drop in popularity of public transport should lead to several new car users who shall flock to the small cars as well as used cars to fulfil the transportation needs of themselves and their family.