Maruti, Mahindra, Hero and others saw a slight recovery in June sales but the numbers are far from good

BCCL
  • India’s largest carmaker, Maruti Suzuki sales were down nearly 54% in June amid supply-chain constraints
  • The good Rabi-crop procurement, early monsoon leading to better Kharif sowing and farm labour shortage helped Escorts sales.
  • The situation still remains grim for other three-wheelers and four-wheelers companies.
  • Analysts at Nirmal Bang said the pressure would continue on commercial vehicles as it is one of the worst-affected segments due to “excess capacity and limited drive availability.”
India’s largest carmaker, Maruti Suzuki sales were down nearly 54% in June amid supply-chain constraints— this is still better than what it experienced in the past two months due to coronavirus lockdown.

The sales number is very much in line with the earlier estimate of -56% given by Nirmal Bang, a broking firm.

At the same time, Escorts saw nearly a 21% growth in its June sales after good Rabi-crop procurement, early monsoon leading to better Kharif sowing and farm labour shortage. However, its rival Mahindra and Mahindra saw a 55% decline in overall sales, despite a 12% growth in its farm equipment sector.

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Escorts said it has opened up most of its factories in multiple shifts to achieve production at about 90% of the capacity in June. However, it said the supply chain situation is better than before but is still volatile.

The situation still remains grim for other three-wheelers and four-wheelers manufacturers. Analysts at Nirmal Bang said the pressure would continue on commercial vehicles as it is one of the worst-affected segments due to “excess capacity and limited drive availability.”

However, the analysts expect the two-wheeler segment to see sharper recovery due to the strong rural sentiments and rise in preference for personal mobility to follow social distancing norms. It also said the retail demand is expected to witness higher demand, especially in non-metro cities and rural areas, which are said to be less impacted by the coronavirus.

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Escorts LimitedJune 2020 sales (actual)June 2019 salesSales growth
Domestic10623864822.80%
Export228312-26.90%
Total10851896021.10%
Maruti Suzuki IndiaJune 2020 sales (actual)June 2019 salesSales growth
Domestic sales53,139114,861-53.70%
Exports4,2899,847-56.40%
Total sales53,918124,708-54%
Mahindra & MahindraJune 2020 sales (actual)June 2019 salesSales growth
Domestic sales18,50539,471-53%
Export8533076-72%
Total Sales19,35842,547-55%
Bajaj AutoJune 2020 sales (expected)June 2019 salesSales growth
Motorcycle213,633351,291-39.20%
Three-wheeler21,21853,333-60.20%
Exports129,204175,399-26.30%
Total234,851404,624-42%
Hero MotoCorpJune 2020 sales (actual)June 2019 salesSales growth
Motorcycle450,744616,526-26%
TVS Motor CompanyJune 2020 sales (actual)June 2019 salesSales growth
Two-wheeler191,076283,461-40%
Three-wheeler7,31113,641-62%
Total198,387297,102-33.20%
Ashok LeylandJune 2020 sales (expected)June 2019 salesSales growth
MHCV8438,427-90%
LCV1,7534,383-60%
Total sales2,59612,810-79.70%
Eicher MotorsJune 2020 sales (actual)June 2019 salesSales growth
VECV1,3584,569-70.30%

SEE ALSO: Here’s what to expect from Maruti and M&M to Hero Moto and Bajaj in monthly auto sales in June

The price of petrol and diesel in some of the big cities in India
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