With the Covid-19 or Coronavirus spreading like wildfire in the nation and with nationwide lockdown has left many car dealerships could face the risk of going Out of Business. in the nearing future.

Adding more to the fire is the steep fall in the average number of car deliveries due to the upcoming BS6 emission norms. Gudi Padwa which is considered to be an auspicious occasion in the state of Maharashtra where people take or book deliveries of a new car. However, this time across there were only a handful of bookings and deliveries.

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Covid-19- Many car dealerships to go Out of Business
Covid-19- Many car dealerships to go Out of Business

According to recent media reports, some dealerships had already delivered all of there pending deliveries by the 20th of March 2020 and even then the number stood in single digits. Company’s like Maruti Suzuki, Hyundai, and Mahindra have reported an uncertain future of some of there dealerships it the on-going Covid-19 outbreak continues.

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The on-going Covid-19 pandemic has only resulted in low sales rate but has also affected the service side of the market. With Low margin, mass-market players which depend on after-sales service and accessories have now hit rock bottom due to the ongoing Covid-19 outbreak. However, some of the larger players and new entrants like Kia and MG are playing smart by introducing various service-related offers and have also reduced the sizes of their respective outlets or have completely shut their non-profitable branches over the past 6 months.

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