AUTO FIRMS SEE SHARP RECOVERY IN JUNE SALES

MUMBAI: India’s top automakers posted sharply higher sequential increases in wholesales, or factory dispatches, in June as they ramped up production though it remained a far cry from the preCovid-19 levels.

Sales at Maruti Suzuki India Ltd and Hyundai Motor India Ltd, the country’s top two carmakers, were nearly half of their year-ago volumes. Tractor and two-wheelers, however, saw a sharp recovery because of rural demand.

Maruti Suzuki reported a 53.8% decline in local passenger vehicle sales to 51,274 units from a year ago. June sales were a sharp improvement from May when it sold 13,865 vehicles. Maruti reopened its plants in a staggered manner in May and gradually ramped up production.

Sales of hatchbacks, which make up bulk of Maruti’s sales, fell 55% to 37,154 units from a year ago.

The automaker anticipates demand to return for its entrylevel small cars.

Puneet Gupta, associate director at IHS Markit, said demand recovery has been poor relative to other markets due to the strict lockdown.

“However, demand has outstripped production in June. While safety norms in factories continue to be stringent, fear among contractual workers remains high,” he said, adding contract workers would be needed for 80% capacity utilization.

Hyundai reported a 49% drop in domestic sales in June at 21,320 units. The company sold 6,883 vehicles in May.

Mahindra & Mahindra Ltd posted a 53% decline in sales at 18,505 units though it doubled from May’s 9,076 units.

Toyota Kirloskar Motor Pvt. Ltd reported a 64% decline in June sales at 3,866 vehicles.