Amid the coronavirus lockdown, dealerships are facing a hard time as there have been no car sales since March 20th. This has prompted Maruti Suzuki to transfer ₹800-900 Crore in a bid to help the cash struck dealers.
Speaking to a leading news channel Executive Director of sales and marketing Shashank Srivastava said “Dealers are facing problems with cash flow right now. We have transferred Rs 800-900 crore in cash funds to dealers to support them at this point”.
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He also stated that the dealerships have almost no BS4 stock at this point and no support was required for the unsold stock.
The Indian Automobile sector which has already been seeing a decline for a while now with major players in the game having slow months, the lockdown as completely halted any and all progress made. Maruti Suzuki alone ended FY20 with a 16% decline compared to FY19. The share in March for Maruti was 54 per cent just a little bit above 51 per cent for the entire financial year.
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Shashank Srivastava also said that “We are preparing for different outcomes. It will take time for sentiment to revive. We are preparing ourselves to restore full normalcy after the lockdown is lifted”.
Maruti Suzuki has around 1.30 Lakh units and they are currently focusing on online marketing campaigns after the lockdown is over.
While coronavirus doesn’t seem to budge at all the automobile sector has already stepped in to help fight the virus. This includes making ventilators and masks. Maruti Suzuki is helping AgVa healthcare spread out the ventilators using its suppliers while the former will make them.
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