It is being reported that the floods caused by the torrential rains in Kerala have caused damage to new and used cars worth more than a thousand crores
It has come to light that the century’s worst floods caused by the torrential rains in Kerala have damaged new car inventory worth more than Rs 1,000 crore. Not just this, the floods have also caused damage to used cars worth thousands of crores. The recent natural disaster has caused 373 casualties and has rendered more than a lakh people homeless. The total loss of property experienced by the state is being pegged at Rs 20,000 crore.
As you can see in the images we have here, the floods have caused a huge damage to the passenger cars and SUVs. The floods caused water-logging of several streets and parking bays, which resulted in the vehicles getting damaged by remaining partially submerged in water. Even the new car inventory with the dealerships has borne the brunt.
Most new car dealerships and their warehouses remained partially submerged for more than a week. As many as 17,500 cars in 350 dealerships across the state of Kerala are said to have been damaged by the floods.
On an average, a new car sold in the state costs Rs 6 lakh. Simple calculations show that the total cost of the damaged cars is more than a staggering Rs 1,000 crore. These flood affected cars now worth nothing in the resale market.
Other than the car dealerships, more than 700 two-wheeler and commercial vehicle dealerships have incurred huge losses. Sales of new cars and other vehicles are now expected to remain really low for the next few months as the citizens will be busy restoring their normal life.
Owners of the car dealerships will claim insurance to recover some of the money they have lost due to the floods. The Federation of Automobile Dealers Association is helping the owners of the dealerships to file claims.
“It will be at least 2-3 months before the buying class comes back to showrooms because the first attempt will be rebuilding the homes and livelihoods. We are presently helping our dealers with bank procedures and insurance claims. We are requesting insurance companies to at least release 75 per cent of the amount,” said a senior executive from the Federation of Automobile Dealer Association.