Signs of Rebound for India’s Auto Sector in July

  • 2020-08-03 12:00:00
  • Reporter

As the coronavirus-related lockdown across India is slowly lifted across most of India, the crisis-hit auto industry finally looks like it is on the road to recovery. 

During July 2020, India’s largest auto manufacturer, Maruti Suzuki India Ltd. saw sales return almost to levels seen last July, at 108,064 units—a rise of 88.2% from the previous month and down 1% from July 2019. Exports amounted to 6,757 units of the total for July. The company says it is seeing a rise in first-time buyers, with the preference for personal transportation over public transport to reduce the risk of infection. 

Meanwhile, the country’s largest two-wheeler manufacturer, Hero Motor Corp. Ltd., saw sales in July 2020 rise 14% compared to the June 2020 figures, and 5% less than during July last year, at 514,509 units. The company cautions that sales continue to be impacted by the micro-lockdowns in several parts of India.  Production has been ramped up at Hero Motor’s six manufacturing facilities in India and two overseas.  

Toyota Kirloskar Motor Pvt. Ltd. sold 5,386 units in July, up 39.31% from the previous month but falling 48.32% year-on-year. The company had to shutter its plant in Bengaluru for four days, when the lockdown was re-imposed, causing a loss in production.  

During July 2020, Hyundai Motor India Pvt. Ltd. saw sales rise 53.98% compared to the previous month, at 41,300 units. This was a 28% fall compared to the units sold in July 2019. Of the total amount sold, 38,200 were sold in the domestic market and the remainder were exported. 

Mahindra & Mahindra sold more tractors than SUVs for the third straight month, with the strong momentum in rural areas continuing. 25,402 tractors were sold in July 2020, down 30.48% from the June 2020 sales figure but 27.06% higher than during July 2019. The lower figures during July were blamed on localized lockdowns in certain states and the coronavirus-related impact on certain suppliers, which caused supply side challenges, however, the sales were still a company record for the month of July. Tractor exports were at 939 units during the month. 

Meanwhile, the company reported a 32.64% rise in sales of commercial and passenger vehicles during July, at 5,678 units, compared to sales in June and 36.03% less than during the same month last year 

Two-wheeler major TVS Motor Co. Ltd. sold 252,744 units in July 2020, up 27.46% from the amount sold in June and down 9.56% from the year-ago period. The company sold a total of 106,062 motorcycles and 78,603 scooters in July 2020. 

Ashok Leyland, the second-largest commercial vehicle manufacturer in India, reported a 56% fall in sales from the year-ago period to 4,775 units in July 2020. This was broken down to 1,461 trucks sold, down 70% compared to July last year, 244 buses sold, down 87% year-on-year to 244 units and 3,070 light CVs sold, down 27% year-on-year.  

Sales of Suzuki Motorcycle India Pvt. Ltd. were up 37% during July 2020 to 31,421 units.

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