Economy

Lockdown brake on March auto sales; Maruti sales skid 47%

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

Transition to BS-VI emission standards too affects auto majors’ performance

Amid the nation-wide lockdown due to the Covid-19 pandemic and the transition from BS-IV to BS-VI emission standards, major auto companies on Wednesday reported steep fall in their domestic sales in March.

For the country’s largest passenger car maker Maruti Suzuki India, the sales declined to 76,240 units during the month, down 47 per cent year-on-year (YoY) compared with 1,45,031 units in March 2019.

“The sales during March 2020 are not comparable with sales in March 2019 due to the suspension of operations with effect from March 22,, in line with national policy,” the company said.

Similarly, Hyundai Motor India, sold only 26,300 units in the domestic market, down 41 per cent y-o-y in March compared with 44,350 units in the corresponding month last year.

Toyota Kirloskar Motor also reported a decline of 55 per cent y-oy in sales to 7,023 units during last month as against 12,818 units in March 2019.

Home-grown companies, including Mahindra & Mahindra and Tata Motors, have also seen a drastic fall in their sales during March. While Tata Motors recorded sale of 5,676 units in March as against 17,810 units (-68 per cent), M&M recorded sale of only 3,384 units as against 27,646 units in March 2019 (-88 per cent).

“Vehicle sales was affected by the Covid-19 outbreak and the subsequent nationwide lockdown. However, the customer response to our newly launched models — the Altroz and the refreshed BS-VI range is encouraging. Our BS-IV vehicle stock is near-zero in the entire network,” said Mayank Pareek, president, Passenger Vehicles Business Unit, Tata Motors.

Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M, said that the sales performance in March was muted due to the lockdown and the disruption in BS-VI ramp-up plan.

 

Supply of parts

“The latter was planned between February and March, but was affected due to the challenges of parts supply from global and local suppliers. We have been able to clear our BS-IV inventory, but for fewer than 100 vehicles. However, there are many vehicles that are sold, but not yet registered because of the closure of RTOs,” he added.

In the commercial vehicle segment, too, companies including Tata Motors, Ashok Leyland, Volvo Eicher and M&M reported a decline in sales of around 90 per cent y-o-y.

Two-wheeler companies, which are also likely to be hit, did not release numbers till the time of going to press.

Published on April 01, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.