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Passenger vehicle exports log marginal growth in 2019-20

Discounts may help cure auto market’s coronavirus hangover

Passenger vehicle exports log marginal growth in 2019-20

Auto dealer says March was his worst month in decades of selling cars thanks to the coronavirus, but April brought days that were “almost normal” and he expects bigger customer discounts to help him sell more Dodge Ram pickup trucks this month. The virus outbreak and resulting stay-at-home orders have clobbered the U.S. vehicle market. (April 2020 a month to forget: FADA)

But from his corner of Texas, which pushed ahead on Friday with a phased relaxation of restrictions put in place to curb the virus, Elder sees enhanced incentives from Fiat Chrysler Automobiles playing a big part in boosting sales.

“I think that will open the door for a ton of orders for the factory,” said Elder, who owns two Dodge, Jeep and Ram dealerships in a rural eastern region of the populous state. His businesses have remained open as they are considered essential.

With levels of unemployment not seen since the Great Depression – 30.3 million Americans filed jobless claims from March 21 to April 25 – it is difficult to predict the level of demand for new vehicles.

Jeff Schuster, president of the Americas for consultancy LMC Automotive, said the market should rebound in the second half of the year, but 2020 sales could be up to 25% lower than 2019.

“Until we get plants up and running and the economy restarted, we’re in uncertain territory,” he said.

That uncertainty is even greater if America experiences a second wave of COVID-19 infections.

Automakers have been burning through money while their plants are shuttered. Many industry experts agree that larger discounts could generate demand and cash flow when they reopen, even if they erode carmakers’ profit margins.

 

 

 

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Source: Reuters

Deepika Chauhan

Hello, I am Deepika Chauhan an automobile enthusiast. Presently working as a Media Manager and Writer. My aim is to guide and teach ways to manage, grow and scale business.
Earlier, I have been a part of Asian News International (ANI) as a Sub-editor cum Producer.

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