Car sales hit hard
Auto sales slumped in May even as companies started operations in a phased manner post lockdown.
Maruti Suzuki India, the country’s largest carmaker, reported an 86.23 per cent decline in total sales at 18,539 units in May. The company exported 4,651 units last month, down 48.82 per cent from 9,089 units in May 2019.
Hyundai Motor India Ltd on Monday reported a 78.7 per cent decline in total sales at 12,583 units in May. Toyota Kirloskar Motor’s sales declined 86.49 per cent to 1,639 units.
Mahindra and Mahindra sold 3,867 vehicles in May against 20,608 vehicles in the same month last year, down 81 per cent. In the commercial vehicles segment, the company sold 5,170 vehicles against 17,879 units earlier, a dip of 71 per cent.
The company’s overall sales stood at 9,560 vehicles in May 2020 compared with 45,421 units a year ago, down 79 per cent.
Among two-wheelers, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, reported an 82.71 per cent decline in total sales at 1,12,682 units in May. The company had sold 6,52,028 units in the corresponding month of the previous year.
Niche bike maker Royal Enfield saw a 69 per cent decline in total sales at 19,113 units in May.
Credit rating agency Icra has lowered its demand forecast for passenger vehicles by up to 25 per cent in 2020-21.
The Covid-19 outbreak and the back-to-back lockdowns have severely impacted the domestic passenger vehicle industry.
According to Icra, demand in the PV segment is now estimated to decline by 22-25 per cent in 2020-21 against an earlier estimated volume decline of 10-12 per cent post the first lockdown. The expectation then was that normalcy would return by the second week of May 2020. However, multiple lockdown extensions are having a direct bearing on the economic environment and consumer sentiments.
The rapid spread of Covid-19 across region and consequent lockdown extension by government has wiped off volume during the first two months of current fiscal.
Each lockdown extension by 15 days has taken toll on full year industry demand by three to five percent.