Auto Sector Breathes a Sigh of Relief as Sales Pick Up in June 2020

Auto Sector Breathes a Sigh of Relief as Sales Pick Up in June 2020

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Overall outlook still looks grim, but manufacturing and dealership unlocks will boost sales. Digital sales platforms to gain more attention from potential buyers

The month of June 2020 has brought about some sales recovery for the automotive industry as the country comes out of lockdown gradually. With production activities commencing at most plants and a significant number of dealerships returning to operations, the sales increase was on expected lines. The digitisation of the sales model from most manufacturers has further encouraged customers to take the online buying route. OEMs have posted data figures, which see a noticeable increase in domestic and export sales.

Maruti Suzuki

Maruti Suzuki posted total sales of 57,428 units in June 2020 (including 52,300 units in the domestic market and 839 units to another OEM). In addition, the company exported 4,289 units in June 2020. Maruti Suzuki closed the first quarter of FY 20-21 with total sales of 76,599 units (66,165 units domestic, 862 units to other OEM and 9,572 units exported).

Toyota Kirloskar

TKM today announced that it sold a total of 3,866 units in the month of June 2020, thereby more than doubling its wholesales when compared to May 2020 (1639 units in May 2020). For reference, the company had sold a total of 10,603 units in the domestic market in June 2019 and had exported 804 units of the Etios as well.

Hyundai Motor India

Hyundai Motor India Ltd registered cumulative sales of 26 820 units for the month of June 2020. Newly-launched products like Creta and Verna along with other models have been receiving encouraging customer response. This has helped Hyundai achieve a wholesale volume of 21,320 units in the domestic market for June 2020 as well as export 5,500 units.

Mahindra & Mahindra

Mahindra & Mahindra Ltd. (M&M Ltd.) posted overall automotive sales (domestic and exports) at 19,358 vehicles in June 2020 - it exported 853 units. In the passenger vehicle segment (which includes UVs, Cars and Vans), Mahindra sold 8,075 vehicles in June 2020 as compared to 18,826 vehicles in June 2019. The company sold 10,417 vehicles in June 2020 as against 16,394 vehicles in June 2019 in the commercial vehicle segment.

Mahindra & Mahindra Ltd.’s Farm Equipment Sector (FES) sold 35,844 Units in the domestic market and exported 700 units.

MG Motors India

MG Motor India recorded the sale of 2,012 retail units for the month of June 2020. The company witnessed increased traction in the markets that are normalizing faster, for both its product lines. The updated BS 6 versions of the MG Hector recorded sales of 1,867 units, while the MG ZS EV clocked sales of 145 units.

Hero MotoCorp

Hero Morocorp reports sales of 4.5 lakh units in the month of June 2020 signalling a positive trend in the adoption of a low-cost personal mode of transport. Wholesale deliveries made to dealerships stood at over 450,744 units, reflecting growth of four times over 112,682 units dispatched in May 2020.

TVS Motor Company

TVS Motor Company registered sales of 198,387 units in June 2020 as against 297,102 units registered in the month of June 2019. The company is expecting to overcome these in the month of July. Total two-wheelers registered sales of 191,076 units in June 2020 as against 283,461 units in June 2019.  Domestic two-wheeler registered sales of 144,817 units in June 2020 as against 226,279 units in June 2019. Motorcycle registered sales of 84,401 units in June 2020 as against 131,331 units in June 2019.  Scooter sales of the Company registered 65,666 units in June 2020 as against 99,007 units in June 2019. Three-wheeler of TVS registered sales of 7,311 units in June 2020 as against 13,641 units in June 2019. The Company's total exports registered sales of 53,123 units in the month of June 2020 as against 69,900 units in June 2019.  Two-wheeler exports registered sales of 46,259 units in June 2020 as against 57,182 units in June 2019.

VE Commercial Vehicles

VE Commercial Vehicles Ltd. recorded sales of 1358 units in June 2020 (YTD 2129 units) as compared to 4569 units in June 2019 (LYTD 13331), recording the decline of 70.3 percent (YTD decline 84 percent). This includes 1321 units of Eicher brand and 37 units of Volvo brand.

Honda Motorcycle & Scooter India

Honda reports a total two-wheeler dispatch up nearly four times to 210,879 units in June 2020 (202,837 domestic and 8,042 exports) compared to 54,820 units in May 2020 (54,000 domestic and 820 exports).

Tata Motors

Tata Motors Limited announced its sales in the domestic and international market, for Q1 FY21, which stood at 25,047 vehicles, compared to 1,37,545 units during Q1 FY20. Domestic wholesale for Q1 FY21 was 9,274 units, a 90 percent drop over Q1 FY20. Passenger Vehicle Business cumulatively sold 14,571 units in Q1 FY21, which was 61 percent lower than Q1 FY20. Retail was stronger than wholesales by 27 percent, driven by the company’s focus on retail while ensuring optimum inventory levels in the network.