Auto sales on as low road to recovery, still in-ve zone

NEW D ELHI: Major automobile man ufacturers, i ncluding Mar uti Su zuki India, Hyun dai, Toyota and Mahindra & Mahindra, reported big dip in June sales, though fared better as compared to May as companies gradually ramped up operations after relaxation in lockdowns.

The country's largest carmaker Maruti Suzuki India (MSI) reported 53.7% drop in domestic sales at 53,139 units last month, as against 1,14,861 units in June 2019. Its June performance, however, got better than May when it had posted domestic sales of 13,888 units.

"On the customer side if you look at parameters which reflect demand pattern which are enquiries, bookings and retails, there I think we have reached levels 80-85% of the normal," MSI Executive Director Marketing and Sales Shashank Srivastava said.

It means "there is quite a good pick up in demand mainly due to pent-up demand" as there was no retail in April and very less in May, he said adding that June was in that sense more representative month because showrooms were open entire month.

Automobile major Tata Motors reported a downfall in total sales for Q1FY21. The company's total domestic sales for Q1FY21 plunged by 82% to 23,845 units from the 1,31,879 units sold during the corresponding period of the previous fiscal. "As of June 30, 2020, the Company has cash and cash equivalents of more than Rs 5,000 crore and undrawn committed facilities of Rs 1,500 crore," the company said in a statement.

Commenting on the Q1 sales, Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors, said: "There are early recovery signs in a few sectors, and we look forward to a gradual pickup in demand on the back of overall economic recovery, while we continue to address the challenges of intermittent demand and supply disruptions from Covid-19."

Similarly, Toyota Kirloskar Motor (TKM) s aw domestic sales pl unge 63.53% in J une at 3,866 units as against 10,603 units in the same month last year.

Homegrown auto major Mahindra & Mahindra saw domestic sales drop by 53% to 18,505 units last month, as against 39,471 units in June 2019. "The automotive industry has started to see recovery both in the passenger and small commercial vehicle segments. This has been led primarily by rising rural demand and movement of essential goods across the country," said Veejay Nakra, chief executive officer, Automotive Division, M&M Ltd.

MG Motor India said it retailed 2,012 units in June. In the two wheeler segment, market leader Hero MotoCorp reported 26.88% dip in sales last month at 4,50,744 units as compared to the same period of last year.

The company's dispatches last month, however, grew four-fold when compared to May this year. TVS Motor Company reported 36% dip in domestic two-wheeler sales at 1,44,817 units last month as compared to 2,26,279 units in June 2019.

TVS Motor expects to overcome these issues in the month of July, it noted.