COVID-19 deals new blow to foreign carmakers' dream in India market

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Foreign automakers' hopes of a booming Indian car market are fading fast as a brutal second wave of COVID-19 infections and limited government ...

NEW DELHI: Foreign automakers' hopes of a booming car market in India are fading fast as a brutal second wave of COVID-19 infections and limited government room for more stimulus spending suggest a recovery could lag far behind China and the United States.

Anurag Mehrotra, managing director at Ford India, told Reuters the car market had not grown as projected and COVID-19 had made matters worse, hurting domestic sales and exports. Instead, years of high taxes on large cars and SUVs that disproportionately affect foreign automakers, an economic slowdown in 2019 and the pandemic have held it back at No. 5.

But that would still be a fraction of the top markets. LMC sees sales in China rising 7 per cent to 22 million vehicles this year, and climbing 21 per cent in the United States to 13.5 million. Utilisation levels have fallen below 30 per cent at some foreign manufacturers' factories, data from SIAM showed.Nissan had hoped for 5 per cent share of India's car market by 2020 but has less than 1 per cent today.

 

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