Auto Sales Analysis Report: Domestic sales in June; consumer sentiments recover in June 2020

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Auto Sales Analysis Report Domestic sales in June; consumer sentiments recover in June 2020
Auto Sales Analysis Report Domestic sales in June; consumer sentiments recover in June 2020

New Delhi: With a historic zero sales in the month of April and resuming operations in May, due to the coronovirus epidemic that is already in the industry with an 18-month slowdown, Q1FY21 is slated to go on sale this financial year. Left in a bad quarter.

However, the past month has proved to be very happy for two-wheeler and tractor manufacturers. While passenger vehicle sales are increasing slowly, commercial vehicles are a tough game.

Moving forward, recovery depends largely on the spread of contagion. But OEMs are raising hopes of easing lockdown restrictions and pent-up consumer demand with the upcoming festive season.

According to dealers, the industry has largely removed BS-IV inventory from its hands, except for the minimum number left at dealerships in the consumption zones of urban cities.

Passenger vehicle

Maruti Suzuki India Limited (MSIL), India’s largest car manufacturer Industries, sold sales across the region. While mini cars registered a decline of 44 percent, sales of compact cars declined by 58 percent.

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Tata Motors sharing on a monthly basis sales. The automaker reported a 61 percent decline in domestic sales of 14,571 units in Q1FY21 as compared to 36,945 units in the same quarter last year.

According to Shailesh Chandra, President, Passenger Vehicle Business Unit (PVBU), Tata Motors, in June 2020, there was a demand to support retail’s stake recovery. Retail wholesale, however, was more than 27 percent stronger. And the company also sold 328 EVs during the quarter.

For Hyundai, the new launch of Creta, Verna, Aura contributed to the volume increase.

OEMsJune 2020June 2019% Change
Maruti Suzuki52,300113,031-54
Hyundai India21,32042,007-49
Mahindra & Mahindra8,07518,826-57
Toyota3,86611407-66
Honda Cars India1,39810,314-86
MG Motor2,012NANA
Kia Motors7,275NANA

Two wheelers

Due to major demand from rural and semi-urban markets, motorcycle and scooter manufacturers reported positive growth in sales, with significant growth compared to the previous two months of April and May.

Hero Motocorp, the world’s largest two-wheeler manufacturer, managed to reach 90 percent of its pre-Kovid levels, while Honda Motorcycle & Scooter India (HMSI) said its Dispatch in June increased nearly 4-fold compared to May 2020 the previous month .

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A part of the market demand has also come from a combination of several factors such as the normal monsoon, the bumper rabi crop and the upcoming festive season, all of which are expected to pick up momentum in the next few months.

While some of these OEMs faced supply chain bottlenecks, going forward, the segment is betting on a positive sales recovery.

OEMsJune 2020June 2019% Change
Hero MotoCorp450,744616,526-27
HMSI202,837450,888-55
TVS Motor144,817226,279-36
Bajaj Auto1,46,6951,99,340-26
Royal Enfield36,51055,082-34

Commercial vehicles

Total CV sales (domestic + exports) of Tata Motors, India’s largest commercial vehicle maker, increased 90 percent to 10,476 units in Q1FY21 as compared to 1,00,357 units in the same period of FY15.

Wagh said there are signs of early recovery in some areas, and we are expecting a gradual pickup in demand for overall economic recovery.

OEMsJune 2020June 2019% Change
Mahindra & Mahindra10,41716,394-36
Ashok Leyland2,13212,085-82
VECV1,0164,136-75


A sales reported of  Domestic head Mahindra & Mahindra due to increasing demanding in rural area and movement of essential commodities across the country.

According to Siddharth Lal, MD of Eicher Motors Limited, Eicher Motors CV industry, which was already under the influence of economic slowdown and changes in axle norms, all affect outbreaks of coronovirus Is a hit in automotive sector.

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The Ashok Leyland’s also same situation in this industry a medium-size and heavy commercial vehicle (M & HCV) sales down in the domestic market with 93 per cent at 572 units in June 2020, and the light commercial vehicle (LCV) sales 82 per cent at 2,132 units down .

While the commercial vehicle segment is the biggest hit, light commercial vehicles (LCVs) are expected to outperform medium and heavy vehicles in the coming months (M&HCV).

Tractors

It was the only segment that saw green shoots last month. Its growth was due to timely arrival of the southwest monsoon, combined benefits of record rabi crops, progress in kharif crops, government support for agricultural initiatives, better rural cash flow and reasonably good availability of retail finance.

OEMsJune 2020June 2019% Change
Mahindra & Mahindra35,84431,87912
Escorts10,8518,96023
Sonalika13,6918,82755

Experts believe that this demand in this area will continue in the coming months as well. The market is expected to ride on personal transport, which is expected to bring a huge increased demand on customers avoiding the public and other modes of transport in light of the ongoing epidemic.

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