Fresh Covid curbs in Maharashtra may impact festive season auto sales: Icra

The fresh restrictions imposed in Maharashtra to contain the second wave of Covid-19 are likely to impact the festive season auto sales, as Navaratri and Gudi Padwa are falling in April, according to rating agency Icra.

Cars in Maruti Suzuki plant in IMT Manesar in Gurgaon. HT Photo (files)
Cars in Maruti Suzuki plant in IMT Manesar in Gurgaon. HT Photo (files)

These two festivals account for a sizeable chunk of the annual vehicle sales across the country, especially in Maharashtra, it said.

Gudi Padwa, which is a major festival of Maharashtra, will be celebrated on April 13, while Navrarati will also begin on the same day.

The Maharashtra government earlier this week announced a slew of restrictions, including night curfews and weekend lockdowns to curtail the rapid spread of the pandemic.

The state government has imposed stricter restrictions to curb the rapid spread of Covid-19 infections. Automobile dealerships, which are also covered under Shops & Establishment Act might have to remain shut till April 30, Icra vice president Ashish Modani said in a statement on Friday.

Also check these Vehicles

Find more Cars
Porsche Macan (HT Auto photo)
1984 cc | Petrol | Automatic (Dual Clutch) | 12.35 kmpl
₹83.21 Lakhs - 1.36 Cr* Ex-showroom price
Add to compare
Check latest offers
Mercedes Benz C-class 2022 (HT Auto photo)
1496 cc | Petrol | Automatic (TC)
₹ 55 - 61 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mercedes Benz Amg Eqs (HT Auto photo)
107.8 kWh | Electric | Automatic | 529 Km
₹ 2.45 Cr* **Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Baleno (HT Auto photo)
1197 cc | Petrol | Manual
₹ 6.50 - 10 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mercedes-benz Glc Coupe (HT Auto photo)
₹ 68 - 69 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mahindra Thar (HT Auto photo)
₹ 10.54 - 16.78 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Also Read : Passenger vehicle sales grew by 28% in March, but Covid concerns remain: FADA

"Festive periods like Navratri and Gudi-Padwa falling due in April account for a fair share of annual vehicle sales across the country and especially in Maharashtra. Accordingly, lockdown restrictions will impact vehicle sales and thereby the financial performance of auto dealers, who have struggled during the past one year," he said.

Restriction on dealership operations could have a short-term impact on liquidity, as most dealerships rely on inventory funding facilities, which have a pre-defined payment period and they may require refinancing to tide over the possible deficit in cash flows, according to Modani.

Support from OEMs as well as financiers thus remains critical for Maharashtra-based automobile dealerships in the interim period, he added.

First Published Date: 11 Apr 2021, 18:33 PM IST
Shopping Bag Shop Now
1% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 98 Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999
68% OFF
PUNZONE Car Body Scratch Remover - Scratch Repair Polishing Wax Kit Sponge Body Compound Cream Wax, Car Body Compound Scratch Remover
Rs. 289 Rs. 898

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.