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There is no doubt that the coronavirus crisis has hit the indian economy hard. Most manufacturers have shut down their production facilities and even the dealerships are closed. At least till the lockdown lifts on april 14, 2020. Dealerships across india have a combined total of unsold BS4 vehicles worth Rs. 6,400 crore. The Federation of Automobile Dealers Association (FADA) says that there are a total of 7 lakh units of unsold BS4 two-wheelers along with 12,000 BS4 passenger car units and 7,000 BS4 commercial vehicles units.
The footfalls at dealerships have come to a grinding halt and the view is that once the lockdown is lifted, people are not going line up at dealerships to buy vehicles either. The middle-class stratum is expected to hold on to big ticket expenses until things are back to normal, which could take up to 5-6 months. And while customer traffic at dealership will still take some time to reach normal levels; this does present an opportunity for vehicle manufacturing companies to bolster its online sales, or sales through their website.
Two-wheeler companies like Hero MotoCorp and honda Motorcycle & Scooter india already have that provision on their websites. In fact, hero began online sales and home delivery of its motorcycles since august 2019 and that too for a very nominal price of Rs. 349 only. hero offers this service in 25 cities of India. Similarly, Tata Motors and hyundai Motor india too have a microsite where interested customers can buy vehicles online.