While the carmakers in India gradually resume their production activities, the scenes at dealerships appear to be totally different but not something that is unexpected or surprising. According to a report, customers are preferring to redeem their cash bookings and cancel their vehicle purchases in order to save money citing uncertain times.
The report mentions a quote by a dealer “Going by the cancellation rate there won’t be much deliveries left over the next few days and we might be enforcing a new lockdown on ourselves”. What can’t be canceled, however, are the bookings where the money was fully paid before the nationwide lockdown was imposed, and the deliveries will happen for those bookings.
Carmakers such as Kia, Hyundai and MG Motors have several thousands of backlog bookings and it remains to be seen what percentage of these bookings will actually be delivered. In fact, most of the new car purchases in India happen thru finance and lucrative EMI deals and obviously, paying a big chunk of the salary every month during a global crisis can be a big deal.
Dealerships across the country are resuming operations, but the footfalls are pretty low.