Ratings agency Crisil Research in its latest report has said that auto sales are likely to remain muted as consumers may not flock to dealerships and even avoid shopping malls and markets due to the fear of coronavirus infection for an extended period post lockdown. It projected that half of passengers vehicle sales and a third of two-wheeler volume are at risk due to the coronavirus-induced pandemic.
The report noted that even if the nation-wide lockdown is lifted on May 3, resumption of normal operations at automobile dealerships would depend on whether a dealership is outside a demarcated hotspot and if it has the necessary licences from the state/ district administration to operate.
Crisil Research assessed the risk that two-wheeler and passenger vehicle industries face based on a two-factor framework - district-wise automobile sales concentration and the risk of spread of COVID-19. It also stated that if a district that accounts for high sales of two-wheelers or passenger vehicles is also impacted severely by the pandemic, it poses a higher risk to overall industry sales.