Coronavirus: 10% of CV dealerships may have to close down

TusharK · 29th May 2020, 11:04

According to a media report, the Covid-19 lockdown is expected to result in the closure of at least 10% of commercial vehicle (CV) dealerships in the next 8-12 months.

Coronavirus: 10% of CV dealerships may have to close down-launch8.jpg

The report states that dealerships want margins to be increased and liquidity in order to survive. At present, margins for commercial vehicles at Indian dealerships are just 1-2%. Some dealerships might even merge with larger dealers.

According to Vinkesh Gulati, Vice-President, Federation of Automobile Dealers Associations of India, the cost structures and operating economics of dealerships has been adversely affected due to the lockdown. Even in Tier II and Tier III markets, the cost of operations and manpower are very high.

Source

Link to Team-BHP News

29th May 2020, 11:04	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,272 Thanked: 55,835 Times	Coronavirus: 10% of CV dealerships may have to close down According to a media report, the Covid-19 lockdown is expected to result in the closure of at least 10% of commercial vehicle (CV) dealerships in the next 8-12 months. The report states that dealerships want margins to be increased and liquidity in order to survive. At present, margins for commercial vehicles at Indian dealerships are just 1-2%. Some dealerships might even merge with larger dealers. According to Vinkesh Gulati, Vice-President, Federation of Automobile Dealers Associations of India, the cost structures and operating economics of dealerships has been adversely affected due to the lockdown. Even in Tier II and Tier III markets, the cost of operations and manpower are very high. Source Link to Team-BHP News
	(3) Thanks