May monthly auto sales data is unlikely to fire up the spirits

• The Indian automobile sector is expected to report a sharp decline in monthly sales for May 2020 due to partial resumption of plants and lower production.
  
• Automobile sales in India have taken a massive hit since March 23 — since the government announced a nationwide lockdown to deal with the COVID-19 pandemic.
  
• The report further expects the car manufacturer Maruti Suzuki to report an overall 73.3% drop in its May sales.
  
• The report also expects TVS Motors to experience around 78% drop in May sales.

Automobile sales in India were already on downtrend in India for over a year. It has gotten worse since March 25⁠ when the government announced a nationwide lockdown to deal with the COVID-19 pandemic and many companies to halt operations.

Both production and sales came to a grinding halt and makers could not sell a single unit in April. Some factories restarted in May but the monthly auto sales data will be far from encouraging, according to a report from Nirmal Bang, a broking firm.

“While most auto manufacturers have received permission and have opened their plants, the entire production ecosystem is yet to fall in place due to supply-side constraints, permission to operate with the limited workforce at plants and limited support from dealers and financiers,” said the report.

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Here’s the estimated drop expected in May automobile sales, according to Nirmal Bang

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