Companies

Automobile sales: June gives some hope to manufacturers

?OUR BUREAU New Delhi | Updated on July 02, 2020 Published on July 01, 2020

For the fiscal as a whole, PV sales are likely to decline 24-26 per cent   -  V_V_KRISHNAN

But numbers yet to catch up on a year-on-year basis

Automobile sales in June improved a lot compared with sales in May, but they still have to catch up when it comes to year-on-year (YoY) comparison, across all the segments.

For instance, in the passenger vehicle segment, market leader Maruti Suzuki India (MSIL) reported total domestic sales of 51,274 units in June, down 54 per cent from 1,11,014 vehicles sold in the corresponding month last year.

Similarly, Hyundai Motor India (HMIL) reported sales of 21,320 units, down 49 per centcompared with 42,007 units in June 2019.

Tarun Garg, Director (Sales, Marketing and Service), HMIL, said: “Our newly launched products like the all-new Creta, Verna, all-new Aura as well as traditionally strong brands like Elite i20, Venue, Santro and Grand i10 Nios have been receiving an encouraging customer response.”

Veejay Nakra, Chief Executive Officer, Automotive Division, Mahindra & Mahindra, said the automotive industry has started to see recovery both in the passenger and small commercial vehicle segments.

The company sold 8,075 units of utility vehicles in June, down 57 per cent compared with 18,826 units in the same month last year. But, like others, it’s sales have grown when compared with May.

“This has been led by rising rural demand and movement of essential goods across the country. Our key brands such as Bolero, Scorpio and Pik-Ups, are all seeing good traction. Managing the supply chain will be our key focus area as we ramp up production to meet this increased demand,” Nakra said.

Japanese subsidiaries of Toyota and Honda also reported decline in sales on a YoY basis.

Interestingly, Chinese-owned MG Motor India recorded sales of 2,012 retail units in June as the carmaker witnessed an increased traction in the markets — for both its product lines — the updated BS-VI versions of the MG Hector that recorded sales of 1,867 units and the MG ZS EV with sales of 145 units.

Two-wheeler sales

In the two-wheeler segment, market leader Hero MotoCorp recorded sales of 4,50,744 two-wheelers in June, down 27 per centcompared with 6,16,526 units in corresponding month last year.

However, on month-on-month basis, sales have improved a lot as the company sold 1,12,682 units in May.

“Sales of over 4.5 lakh two-wheelers in a highly disrupted month is also a clear signal of the resilience of the Indian economy to be able to revive in the face of any adversity. This has vindicated our strong belief in the robust fundamentals of the Indian economy,” Pawan Munjal, Chairman and Chief Executive Officer, Hero MotoCorp, said.

Confidence booster

Honda Motorcycle & Scooter India (HMSI) also said June turned out to be the first confidence booster. The company sold 2,02,837 units of two-wheelers in June, down 55 per cent, compared with 4,50,888 units in June 2019.

In the commercial vehicle segment too, sales have improved from May, but June numbers declined on YoY basis.

 

 

 

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Published on July 01, 2020
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