The trade has misplaced almost two months of gross sales as a result of nationwide lockdown to examine the unfold of Covid-19. Whereas manufacturing has restarted final month, it nonetheless hasn’t reached regular ranges. Additionally, fewer persons are visiting showrooms.
Schwenk mentioned Mercedes-Benz India had resumed operations and opened all supplier shops, however client sentiment remained weak.
What is especially regarding is that the decline will come on the again of the sharpest drop in gross sales reported in a decade in 2019, when luxury-car gross sales fell 15% to 35,000 items. Within the January-March quarter, gross sales within the native market dropped by a 3rd to round 7,000 items.
“It’s secure to say there shall be an enormous influence (on gross sales) in Q2. April was utterly gone, Could nearly gone … Our expectation is we’ll see a gradual enhance in buyer demand … There may be hesitation available in the market,” he mentioned, including: “Come festive season, we’ll see some stage of normalcy in operations.”
Schwenk mentioned new product interventions would assist in reviving the market. A discount in GST charges on vehicles may also go a great distance in triggering demand.
“There could also be some delays, however we’ll go forward with all scheduled launches … This yr goes to be extraordinarily difficult. We have to desperately come again to some progress of economic system … A GST reduce will certainly be a significant stimulus even whether it is non permanent,” he mentioned.
Mercedes-Benz plans to launch 10 merchandise in 2020. It should launch these merchandise as per the supply of parts.
The launch of the EV EQC, for example, had been deliberate for April 2020, nevertheless it has now has been delayed. The corporate, nonetheless, mentioned it had been receiving shipments even through the lockdown and had sufficient stock at hand to proceed manufacturing with none disruptions.