New Delhi: Automobile sector saw another slip in sales as the whole sales of passenger vehicles fell by around 10% in the last month, as per the data of Society of Indian Automobile Manufacturers (SIAM) which was released on Wednesday. The sales were down in comparison to the sales of March 2021.

April of 2020 was also an unprecedented month with both production and sales coming to a pause reason being the national lockdown implemented by the Central govt. Automakers saw a stellar rebound in the following months as the country started to open up. But now the second wave of Covid-19 pandemic has once again cast a long and dark shadow on the entire automobile industry. Even when there is no national lockdown in place, almost every state in the country has implemented their own lockdowns, restrictions and curfews to break the chain of transmission.

Restrictions were already being implemented in the end of March and they were in effect through April and are still continuing. SIAM Director General Rajesh Menon said, “As expected, the Covid wave has impacted the sales of vehicles in the month of April 2021. Sales of passenger vehicles fell by about 10.07 per cent, compared to March 2021, due to various restrictions in states which have been experiencing a surge in Covid-19 cases.”

Sales in April stood at 2,61,633 units in comparison to the 2,90,939 units sold in March. The sales are likely to decrease even more in May as many manufacturers have announced a halt in manufacturing operations at their facilities. Demand too is likely to go down as many will not make such big investments with the future still uncertain.

The situation is equally bad for two-wheelers as SIAM data reveals that dispatches to dealers stood at 9,95,097 units in April, seeing a 33% decline. The dip in scooters stood at 34% while it was 33% for motorcycles. Reason being the spike in COVID-19 cases even in smaller towns and rural areas which are important for manufacturers of two-wheelers. The spike in rural areas will further decrease the demand for two-wheelers.

Across all vehicle segments, automobile sector has seen 30% decline in sales between March and April with no hopes of a quick revival as medical experts are already warning about a third wave in the coming months even as India is struggling to fight the second wave.