Coronavirus outbreak has brought the whole world to a halt affecting over 190 plus countries so far. India isn’t spared by the deadly virus with over 7000 citizens hospitalized and over 200 is the current death toll. The country is under a nationwide lockdown till 14th April 2020 forcing automotive manufacturers to shut down production units, temporarily close down dealerships and delay launches. With the citizens staying at home and the possibility of further extension of lockdown, manufacturers are looking at a bleak future till the situation normalizes.
Tata Motors is severely affected by the COVID-19 outbreak with the recent news of the company announcing that it would stop reporting monthly wholesale numbers from April 2020. Tata Motors saw sales of just 12,924 units in March, compared to 74,679 units in the same month last year. Considering April will be under lockdown for 15 days with reports of a further extension, this would probably mean that the sales would further decline for Tata Motors.
Instead of a monthly sales report, Indian automaker will release quarterly wholesale and retail figures. According to a news report in an automobile publication, Tata Motors wouldn’t report the monthly reports due to the volatility in the market. Tata believes that the decision will help them in making long-term decisions for business while helping the dealers in serving customers. The company is of the view that the steps taken now will help the investors to focus on the long term drivers of business while ignoring the short term volatility brought on by Coronavirus.
This decision follows Tata Motors earlier move to spin off its passenger vehicle business, which includes electric vehicles into a new division. Tata motors were earlier quoted by Media outlets “The plan to subsidiaries is by transferring relevant assets, IPs and employees directly relatable to the PV business for it to be fully functional on a standalone basis through a slump sale”.
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Another Indian Automaker Mahindra and Mahindra wouldn’t be investing further in its struggling South Korean unit SsangYong Motor. So, we can expect more news from the Automobile industry as it grapples with the Coronavirus impact on the Indian economy.