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Covid-19 Impact: For the first time India’s Automaker report zero sales in April

1. Mahindra & Mahindra (M&M) on Friday said it has sold zero units in the domestic market.
2. Lack of supply parts paired with the shutdown further led to temporary closure of production factories.

SNS | New Delhi |

For the first time in history of country’s automobile sector, companies like Maruti Suzuki India, Mahindra & Mahindra (M&M) and Morris Garages (MG) Motor India reported zero sales in the month of April.

In a statement, Maruti Suzuki India on Friday said: “it had zero sales in the domestic market in April 2020.”

This was because in compliance with the Government orders all production facilities were closed, the statement added.

The company, however, exported 632 units from Mundra port following resumption of port operations. The company said the units were dispatched ensuring all safety guidelines.

Similarly, Mahindra & Mahindra (M&M) on Friday said it has sold zero units in the domestic market in April due to coronavirus-led nationwide lockdown.

It, however, dispatched 733 vehicles to overseas markets during the last month.

At Mahindra, we are working hand in hand with all stakeholders, especially our dealer and supplier partners, to get our ecosystem started, once the lockdown is lifted,” M&M Chief Executive Officer, Automotive Division Veejay Nakra said.

The safety of employees will be of paramount importance to the company while resuming operations, he added.

“We are hopeful that our dealerships will open soon and have stocks to cover the first few weeks of sale,” Nakra noted.

MG Motors India too reported zero retail sales for April 2020, stating closure of showrooms due to the lockdown.

After government’s directives, the carmaker began its operations and manufacturing on a small scale at its facility in Halol in the last week of April 2020.

Over a month ago, hundreds of factories producing a wide range of automobile parts spread across India were shutdown after the government imposed a nationwide lockdown to contain the spread of Covid-19 caused by the coronavirus.

Lack of supply parts paired with the shutdown further led to temporary closure of production factories.

Even though the government has allowed major automobile firms to restart their production line, they are awaiting for further directives on reopening their parts supply chain as well as their dealerships.