Auto sales in April have started showing the impact of lockdowns that has put the brakes on the recovery of the sector, a report said on Tuesday. With more states announcing lockdowns and some more OEMs expecting to go for maintenance shutdowns, as many as 50 per cent of the dealers are likely to be impacted by the move. However, the full-year prospects remain positive if the COVID wave recedes in the April quarter and the vaccination drive goes as planned, brokerage firm Centrum said in the report.

The opportunity cost was higher in April as it had a mini-festival period and weddings that fell after Holi. Two-wheeler sales were higher in this period and hence channels were stocked up. However, the lockdowns happened in the states that contributed 25-30 per cent of the sales, it added. Centrum said the passenger vehicles sales started in the month with low inventory and hence stocked up before the production shutdowns in May.

The commercial segment was the worst hit and lagged the registrations, indicating low channel inventory now, while tractor sales have also declined sequentially hinting at the pandemic impact in the hinterlands, it said.

“We expect May to be subdued with more states taking lockdowns and as OEM’s take maintenance shutdowns,” Centrum Broking said.

Noting that April was anticipated to be a good month for two-wheelers on the back of mini-festivals at the regional level and marriage season demand in the rural areas, the OEM’s had prepared their channels with stock. However, with the rising COVID cases, states like Maharashtra, Madhya Pradesh, Jharkhand, and Delhi started imposing lockdowns as a result of which, the wholesales of domestic two-wheelers got impacted especially in the lower cc-segments, with month-on-month sales of Hero MotoCorp, Bajaj Auto and TVS Motors declining by 37 per cent, 30 per cent and 35 per cent, respectively, in the domestic market.

Bajaj Auto’s management expects 50 per cent of dealers to be shut in May as compared to 30-35 per cent in April on the back of lockdowns, the report said, adding inventories are also higher than normal for the industry. According to Centrum, the passenger vehicles stocks were low at the start of April and production wasn’t impacted much in the month. Therefore, the OEMs took the opportunity to improve the dealer inventories as retails got impacted due to the pandemic.

In May, some OEM’s have brought forward the mid-year planned maintenance activity and hence production will be lower. Also, as more states have announced lockdowns, retails are expected to be low, it said.

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The Ministry of Home Affairs (MHA) has issued new guidelines on Wednesday, for opening up of more activities in areas outside the Containment Zones. New guidelines, to come into effect from October 1, 2020,

Cinemas/ theatres/ multiplexes will be permitted to open with upto 50% of their seating capacity.

Swimming pools being used for training of sportspersons will be permitted to open.

Entertainment parks and similar places will be permitted to open.

For re-opening of schools and coaching institutions, State/ UT Governments have been given the flexibility to take a decision after 15th October 2020, in a graded manner.

However, Higher Education Institutions only for research scholars (Ph.D) and post-graduate students in science and technology stream requiring laboratory/ experimental works will be permitted to open from 15th October, 2020,

In closed spaces, a maximum of 50% of the hall capacity will be allowed, with a ceiling of 200 persons. Wearing of face masks, maintaining social distancing, provision for thermal scanning and use of hand wash or sanitizer will be mandatory.

Source: PTI

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Mukesh Ambani gained Rs 90 crore per hour since the coronavirus lockdown in March, thus retaining his position as the richest Indian for the ninth consecutive year on the IIFL Wealth Hurun India Rich List 2020.

Ambani, who is the only Indian in the world’s top 5 richest persons, amassed Rs 2,77,700 crore through a series of fund-raising and strategic investment from Facebook, Google, Silver Lake among others into Jio and Reliance Retail, taking his personal wealth to Rs 6,58,400 crore

Ambani’s total wealth, which is now bigger than the combined wealth of the next five in the list, making him Aisa’s richest individual and fourth richest man across the world, according to the report.

The IIFL Hurun India list names the richest individuals in the country having a wealth of Rs 1,000 crore or more. This year, the list names 828 Indians, where 627 increased their wealth and 162 are new entrants. Top 100 individuals in the list account for nearly 64 per cent wealth of the list.

MD and Chief Researcher, Hurun India, Anas Rahman Junaid, said, “28 per cent of the upswing in wealth on the list has been bestowed by Mukesh Ambani, bespeaking Ambani’s meteoric success post diversifying from oil to telecom and retail. A further 21 per cent of the additional wealth has been generated by pharma, mainly on the back of the rise in healthcare spends and a realigned priority towards personal healthcare stimulated by the Covid-19.”

Source: Kashmir Monitor

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Tougher restrictions banning people from mixing with other households in any setting will be introduced in large parts of north-east England due to a continued sharp rise in coronavirus cases.

Making the announcement in the House of Commons, Mr Hancock said: “Unfortunately the number of cases continues to rise sharply.

“The incidence rate across the area is now over 100 cases per 100,000. We know that a large number of these infections are taking place in indoor settings outside the home.

“And so at the request of the local councils, with whom we have been working closely, we will introduce legal restrictions on indoor mixing between households in any setting.”

He said these steps are not taken “lightly” but they must happen now as swift action is more likely to bring the virus under control.

The Government said that, as of 9am on Monday, there had been a further 4,044 lab-confirmed cases of coronavirus in the UK, taking the overall number to 439,013.

Source: Wales Online

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