Economy

Auto sales revv up in June as States unlock

Our Bureau New Delhi | Updated on July 01, 2021

Inventory build-up in anticipation of big July offtake

With States steadily unlocking, automobile companies are seeing a significant rise in enquiries and bookings and stepped up dispatches to dealers in June.

The country’s largest carmaker, Maruti Suzuki India (MSIL), on Thursday reported domestic sales soaring more than three and half times to 1,24,280 units in June compared to 32,903 units in May. Similarly, Hyundai Motor India (HMIL) reported sales jumping 62 per cent to 40,496 units in June compared with 25,001 in May.

 

Tata Motors reported a growth of 59 per cent to 24,110 units from 15,181 in May. Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors, said, “The PV industry’s sequential growth momentum got adversely impacted in the first quarter, owing to the lockdown across the country... the industry is likely to record strong growth numbers off a low base on a year-on-year basis.”

Mahindra & Mahindra’s wholesale more than doubled to 16,913 units in June against 8,004 the previous month.

Toyota Kirloskar Motor also reported multi-fold jump in its wholesale numbers to 8,801units compared to 707 units in May. So, did ‘City’ maker Honda Cars India dispatching 4,767 units.

MG, Kia retail sales up

MG Motor India said it retail sales trebled to 3,558 units in June from 1,016 units in May. Similarly, Kia India registered retail sales of 15,015 units against 11,050 units in May.

“The last few weeks have shown signs of improved customer sentiment, and we continue to be optimistic about the future. We, however, remain cognisant of the ongoing situation and are reviewing our operations week-on-week, evaluating measures to meet the demand for our vehicles,” Tae-Jin Park, Chief Sales and Business Strategy Officer, Kia India, said.

Two-wheelers on the move

In the two-wheeler segment, Hero MotoCorp’s wholesale jumped almost three times to 4,41,536 units in June against 1,59,561 units in the previous month.

Bajaj Auto also reported factory-gate sales jumping two-and-half times to 1,55,640 units from 60,342 units in May.

CVs, tractors too

In the commercial vehicle and tractor segments, also, companies reported multi-fold jump in their sales on monthly basis.

According to Mitul Shah, Head of Research at Reliance Securities, the significant month-on-month and year-on-year rise across categories is due to low base. Inventory built up by manufacturers in anticipation of strong July sales led to better wholesale volumes. The tractor segment outperformed strongly with close to 100 per cent month-on-month growth on the back of record high farm output and better monsoon prospects.

 

 

 

Published on July 01, 2021

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