No Dec cheer for auto firms though Maruti, M&M end with a smile

S. Ronendra Singh New Delhi | Updated on January 01, 2020 Published on January 01, 2020

Car makers gearing up for BS-VI transition

Passenger vehicle sales continued their downtrend in December 2019 with many companies liquidating their BS-IV stocks to maintain a lean inventory and not put any excess burden on dealers before the shift to BS-VI in April.

However, Maruti Suzuki India, 50 per cent of whose cars are already BS-VI-compliant, has reported positive numbers led by its compact segment (with offerings like new WagonR, Swift, Baleno and Dzire) and utility segment (with models like Ertiga, XL6 and Vitara Brezza).

The company reported a 2.5 per cent year-on-year (YoY) growth in its domestic sales at 1,22,784 units in December 2019 against 1,19,804 units in the same month the previous year.

Apart from Maruti Suzuki, Mahindra & Mahindra also reported positive numbers during the period. “Our performance in December is as per year-end sales outlook, and currently, we are also comfortable with our overall stock levels. As we get into the new year, we are fully equipped to roll out our BS-VI products,” Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M, said.



Similarly, Toyota Kirloskar Motor is also liquidating BS-IV stocks to maintain a lean inventory before shifting to BS-VI in April. The ‘Camry’ maker reported a 45 per cent YoY decline in sales to 6,544 units in December against 11,836 units in the corresponding month previous year.

“We are consciously lowering the volumes sold to dealers to ensure a smooth transition to BS-VI by April 2020 and ensure that there is no pending BS-IV inventory at dealerships by March 30, which will be unsaleable post the transition. We are well prepared for the BS-VI transition,” Naveen Soni, Senior Vice-President, Sales and Service, Toyota Kirloskar Motor, said.

Hyundai Motor India and Tata Motors also reported a 10 per cent decline in sales in December 2019. In the commercial vehicle segment, most of the companies, including Tata Motors, M&M and Volvo Eicher, reported decline in sales during last month.

Two-wheeler makers are expected to report their sales numbers on Thursday.


Published on January 01, 2020
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