Maruti Suzuki is India’s largest carmaker. On Friday, the made a shocking declaration to the public. It reported zero domestic sales last month. This is the first time ever that the giant company has record zero sales. The nationwide lockdown that was imposed to contain the coronavirus spread, is the major reason behind this crisis. It has pushed the business to a standstill. The company’s production and manufacturing units were closed in compliance with government orders.
In a regulatory filing, the company declared that the nil sales also included sales to original equipment manufacturers. The lockdown has crushed the demand in the auto industry, which was already striving to survive amidst plunging sales. The declining sale level also forced several auto manufacturers to reduce their production.
In March 2020, the company’s domestic sales dropped almost 47.9% to 76.976 units sold. Then, the automaker, on March 22 suspended its services.
In totality, the sales of domestic passenger vehicles dropped 51% in March, said the industry body Society of Indian Automobile Manufacturer’s data.
It also said that the automobile sector saw one of its steepest decline in domestic sales. The company had reached the sale value of 143,245 vehicles in April 2020. The domestic sales being 134,068.
Last month, the company told that it will keep extending support to the central bank and state governments by following all the precautionary measures and advisories. And also that it is fully committed to the safety of its employees, business partners and customers.
The shares of Maruti Suzuki are down by 27.24%. There’s an 18.27% fall in the benchmark S&P BSE Sensex index. In April, however, it recovered 25.01% following a 31.77% plunge in the previous month.