May will be one of the worst months for the auto sector. The second Covid wave and local lockdowns have forced 75% of auto retail stores—20,000 out of 26,500 outlets—to shut down. Stores that are open see few footfalls.
Results are grim. There’s immense pressure on the cash flows, and a potential revenue loss of Rs 20,000-25,000 crore at the retail level. Dealers across the country fear retail will fall 70-80% in May.
Vinkesh Gulati, president