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Business News/ Auto News / Automakers report sharp fall in wholesale in May due to second wave of covid-19
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Automakers report sharp fall in wholesale in May due to second wave of covid-19

Manufacturing and sale of automobiles came under pressure from the first week of April when Maharashtra announced strict lockdown measures

With covid cases showing signs of decline in the past one week, some automakers have started resuming production but only with single shifts. (Ramesh Pathania/Mint)Premium
With covid cases showing signs of decline in the past one week, some automakers have started resuming production but only with single shifts. (Ramesh Pathania/Mint)

NEW DELHI : Bajaj Auto Ltd, the country’s second largest motorcycle manufacturer, on Tuesday reported domestic wholesale dispatches of just 60,342 units in May as production activity at factories were hampered by the explosive rise in cases of covid-19. The Pune-based automaker sold 126,570 units in April.

With demand in the domestic market remaining subdued due to the local lockdown in almost all states, Bajaj Auto continued with production to meet its export orders and shipped 180,212 motorcycles, which is 18.6% lower than 221,603 units exported in April.

Manufacturing and sale of automobiles came under pressure from the first week of April when Maharashtra announced strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others followed suit. Maruti Suzuki India Ltd, Hero MotoCorp Ltd, Hyundai Motor India Ltd and others have either stopped production or reduced output significantly.

Some manufacturers, including Tata Motors Ltd and Bajaj Auto, have been continuing with production with limited capacity. Some firms also shut down plants since deliveries stopped and sales are expected to remain subdued for the next two months.

With covid cases showing signs of decline in the past one week, some automakers have started resuming production but only with single shifts.

Vehicle sales are usually compared on a corresponding basis, but in April, last year, automakers had to close down their respective factories and showrooms, as the Union government imposed stringent nationwide lockdown from 18 March to contain the spread of covid-19 pandemic. Subsequently, operations remained suspended till the first week of May and, in some cases, early June.

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Published: 01 Jun 2021, 12:43 PM IST
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