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Ashok Leyland has released the sales report for zero sales in April due to the COVID-19 pandemic. The nationwide lockdown was supposed to be lifted by May 4 but seeing the current scenario, the government has further extended it to May 17.
Vipin Sondhi, CEO and MD, Ashok Leyland regarding the April sales numbers stated, "These are truly unprecedented times, and both Government and Industry need to work even more closely, across the supply chain to bring the industry back on its feet. The recovery of the auto industry is vital for the revival of the overall economy. For the first time ever in the history of the Automotive Industry in India, we have seen a ‘zero sale' month, in April 2020."
Just like Ashok Leyland, Hyundai also recorded zero domestic sales in April due to the COVID-19 pandemic but managed to export 1,341 units during the month. According to the company, export shipping was conducted by following the guidelines set by the government and export regulating authorities. On the other hand, Maruti Suzuki also reported zero domestic sales in the month of April and could only export 632 units under the same rules.
Earlier, Ashok Leyland announced that they have received permission to resume operations at their Alwar, Bhandara and Pantnagar plants. However, the company stated that they will commence production based on the market demand. Commenting on the same, Vipin Sondhi said, "Auto OEM's are dependent on the ancillary sector. A smooth flow of the complete supply-chain is vital for production of vehicles. While the Government has given the auto sector permission to resume operations in a phased manner in certain geographies, with certain norms and conditions, it still remains a challenge for the industry to resume operations."
"This because, while the OEM production unit might be in the green zone, even if one ancillary unit that supplies a small part happens to be in the red zone, will make a component of the vehicle unavailable, thereby making the production process impossible. The need of the hour is for the industry to collaborate together with the local agencies to ensure a smooth supply chain, for the OEMs to commence production and help boost the economic revival of the nation," he further added.
Thoughts About the Zero Sales Figures Due To The COVID-19 Pandemic
Well due to the COVID-19 crisis the sales of many manufacturers for the month of April remain almost the same. We hope that after the lockdown, the sales number will gradually increase and the market will become smooth again.