Car sales register modest rise in May

MUMBAI: India’s automobile industry showed initial signs of limping back to normalcy, with some of the major automakers notching modest sales in May as they reopened factories on a limited scale. Though the sales performance was a fraction of what the companies reported in the same month last year, they are a step ahead from the near negligible sales seen in April.

Several leading automakers resumed operations in endapril, utilising barely up to 20% of their installed capacities due to issues such as constraints in supply of parts, enhanced safety measures as well as a drastic fall in demand with the coronavirus crisis denting sentiments.

Maruti Suzuki India Ltd, the country’s largest carmaker, reported total sales of 18,539 vehicles in May, having resumed production in a phased manner at two of its factories last month after easing of the lockdown curbs. The carmaker, which had sold 134,641 units in May last year, said it had restarted its Manesar plant from May 12 and Gurugram facility from May 18, according to a company statement. Since resuming operations, the Suzuki Motor Corp. unit has been utilising around 20% of its capacity.

“Since staggered lockdown was the only way India can minimize the loss of human capital, it is sure we have still have more months to go even before we get to the new normal,” said Puneet Gupta, associate director at IHS Markit, a market researcher.

Hyundai Motor India Ltd, the country’s second-largest carmaker, posted domestic wholesales of 6,883, sharply lower from 42,502 vehicles a year ago.