Imapct of COVID-19 on Auto Dealers

With demand slowing, the Indian auto industry is in crisis with the COVID-19 lockdown and uncertainty about when to return to normal. With dealerships closing, OEMs and auto dealers are in serious doubt.

Speaking at ETO Live webinar, MG Motor India President and MD Rajiv Chabha said, “This is a golden time to focus on dealer consolidation. We need to think about dealer discounts and focus on having fewer dealers. ”

Speaking about managing the business potential for the next six to twelve months, Diego Graffi, CEO and MD of Piaggio Vehicles, said, “There is still a lot of fear in the public after the lockdown. Therefore, dealers can support them by providing them with effective tools to create and manage demand through real-time bookings and online sales. These methods allow dealers to maintain minimum business standards until the Kovid-19 concept is in the public domain. The next 12 months will be a challenge for the industry, Graffi said. We need to focus on cost reduction and resource optimization. We mainly focus on showing humanity and community support for our networks.

The automotive industry is most affected by the current lockdown in terms of the overall product and retail sales. Dealers are the worst, as they have not stopped vehicle sales in the past two weeks, but most of them are in BS-IV stocks, which have exacerbated their financial crisis during these trying times.

Source- Auto.economictimes.indiatimes.com