Strict restrictions have been imposed in Maharashtra due to the rapid increase in the number of coronavirus patients. However, the decision has raised concerns of the automotive sector. Vehicle manufacturers and dealers fear of declining demand once again.
The daily number of patients in the state has gone up to 50,000. The growing number of patients in major cities of the state, including Mumbai, has raised concerns of the government.
As a result, strict restrictions and weekend lockdown have been imposed in Maharashtra. However, if this decision continues for a long period of time, the car dealers will have to suffer huge losses.
Many car and bike dealers will have to shut down their showroom due to lockdown imposition. Last year's lockdown had badly impacted the automotive dealers. The automotive sector has been back on track since September 2020. The sector saw impressive vehicle sales figures in February and March. However sellers are yet to recover from last year’s impact.
Maharashtra accounts for 15 to 20 per cent of car and SUV sales across the country. Maharashtra also accounts for about 20 to 25 per cent of two-wheeler sales. Gudipadva is a few days away. On this day, a large number of vehicles are sold. However, due to state government restrictions, vehicle sales on this day will be impacted. The manufacturing companies have supported the government's decision given the situation in the state.
However, there are fears that the recession will hit the region again. In the financial year 2020-21, vehicle sales declined by 25-27 per cent to 1.9 per cent total vehicle sales