Tuesday, December 5, 2023

Auto sales zoom into fast lane in September, CV sales in red: All you need to know


The Indian auto industry has been going through a roller coaster ride for more than a year. First, it was an economic crisis and lately the Coronavirus crisis and lockdown due to that, which led to the historic zero auto sales in the first month of the current financial year. However, with the gradual reopening of economic activities in the last two-three months, demands are coming back and the auto sales are experiencing a revival.

In September, most of the Original Equipment Manufacturers (OEMs) have posted double-digit growth in the passenger vehicle, two-wheeler and tractor segments.

The tractor sector has sold 1,08,649 units in September 2020, up 28.4% in comparison with 84,639 units of tractors sold in the same month a year ago. The increased disposable income for rural consumers because of favourable monsoon, good Kharif season has helped the tractor sales to post an overall green picture in September 2020, with double-digit growth.

Monthly auto sales performance in September 2020 of major automakers have been up, thanks to the healthy rural sales and revival in urban markets in recent months. However, commercial vehicle sales are still in the red zone as compared to the low base figures of 2019.

Halfway through the current financial year, the reviving consumer sentiment is indicating a brighter picture in Indian auto sales scenario during the upcoming festive season, which is considered as one of the most happening time for the automakers across the country.

The auto sales have increased on a sequential basis since the zero sales month of April and last month, the Indian auto industry recorded its best performance in this fiscal.

Several factors have played a key role in this. While the Coronavirus has driven the demand of personal mobility, improved availability of financing, increased stocking at the dealer level, pent-up demand, reopening of tier-2 and tier-3 markets, the comeback of migrant labour forces, normalising supply chain network, new product launches, good monsoon, higher agricultural output also helped in the revival path.

However, the pre-Covid normal is still far away for the auto industry and auto sales. With the rising cases of Covid-19 infections across the country at a fast pace, there are still uncertainties looming ahead of the Indian auto industry. There are assumptions that the real test for the auto industry lies ahead, in the post-festive season. As experts believe, the growth might be muted during that phase.

Here are the snapshots of the domestic auto sales numbers in the passenger vehicle, two-wheeler, commercial vehicle and tractor segments:

Passenger vehicles domestic sales:

OEMSeptember 2020September 2019% change
Maruti Suzuki1,47,9121,10,45433.91%
Tata Motors21,1998,097161.81%
Mahindra & Mahindra14,85714,3333.65%
Honda Cars India10,1999,3019.65%
Toyota8,11610,203– 20.45%
MG Motor India2,5372,608– 2.72%
Volkswagen2,0502,550– 19.61%
Nissan7801,433– 45.57%
FCA554614– 9.77%

Two-wheelers domestic sales:

OEMSeptember 2020September 2019% Change
Hero MotoCorp697,293600,50916.12%
Honda Motorcycles & Scooters India5,00,8874,55,8969.87%
TVS Motor Company2,41,7622,43,0470.53%
Bajaj Auto2,19,5001,77,34823.78%
Royal Enfield55,91054,8581.92%

Commercial vehicles domestic sales:

OEMSeptember 2020September 2019% Change
Tata Motors23,24524,279– 4.26%
Mahindra & Mahindra18,90718,8720.18%
Ashok Leyland7,8477,851– 0.05%
Volvo Eicher Commercial Vehicles2,9963,251– 7.84%

Tractors domestic sales:

OEMSeptember 2020September 2019% Change
Mahindra & Mahindra42,36136,04617.52%
Sonalika Tractors16,00010,57151.36%
Escorts Tractors11,45310,5218.86%
John Deere9,8056,01063.14%
New Holland4,3013,33928.81%
Force368399– 7.76%
SDF290501– 42.11%

Also Read: New motor vehicle rules are in force from October 1: All you need to know

Team AFT
Team AFThttps://autofintechs.com
The jack of all trades behind the Autofintechs.com


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