Covid-19: second wave down the auto sales: major players report monthly sales declines
By Sanjay Maurya
In 2018, India’s automotive industry was the world’s fifth-biggest industry, but the Covid-19 pandemic has posed several challenges for auto sales. In the coming months, automakers expect supply chain, dealership operation, and customer movement to face challenges.
“Indian customers, even in a normal economy, can postpone vehicle purchases for months, waiting for discounts,” according to Gaurav, associate director, IHS Markit.
The second wave of Covid-19 hit the Auto sales market hard in April 2021, affecting wholesale dispatches of vehicles, with most automakers reporting a drop in April compared to March (sales growth cannot be compared year-on-year because a nationwide lockdown was in effect in April 2020).
Top 10 Major Automobile Companies Sales Report
- Maruti Suzuki registered sales of 1,35,879 units, a decline of 7% in April.
- In April Hyundai India sold 49,002 units, a decline of 6.8% over March (52,600).
- Tata Motors sold 25,095 units (down by 15.4%).
- Kia India sold 16,111 units (down by 15.6%).
- Toyota Kirloskar Motor sold 9,622 units (down by 35.9%).
- Tata Motors sold 14,435 units in April 2021, down from 36,955 in March 2021. (down by 61 percent).
- Ashok Leyland’s sales fell from 15,761 in March to 7,961 in April (down by 49.5 percent).
- VE Commercial Vehicles saw a 74.2 percent decline in sales (from 6,221 units in March to 1,604 units in April).
- In April, Hero MotoCorp saw a 37% drop in wholesale numbers from the previous month (3,42,614 units).
- Royal Enfield sales dropped from 60,173 units in March to 48,789 units in April.
However, there is still hope for better days ahead, as shown by the fact that Mahindra & Mahindra sales increased by 9.5 percent (from 16,700 to 18,285 units), while Honda sales increased by 27.7%. (from 7,103 units to 9,072 units). Although Honda’s sales increased by 27.7%, (from 7,103 units to 9,072 units). Suzuki Motorcycle, on the other hand, increased by 6.1 percent from 60,222 to 63,879 units.
According to Mohan Singh senior vice-president, Praxis Global Alliance, “M&HCVs could have a modest effect because the government hasn’t shut down the economy yet, and goods transportation is still needed. LCVs can be unaffected because they provide last-mile connectivity, especially for FMCGs and perishables.”
Two-wheeler manufacturing, in particular, could face production constraints, according to Mohan Singh. “Some southern states under partial lockdown included Maharashtra, where several component manufacturers are located supplies will be affected”.
Overall, argue that the second wave’s effect on the auto industry may be important, but it’s too early to estimate the impact. “There may be a third wave after the second wave subsides,” Mohan Singh said.