- The two-wheeler segment is expected to see sharper recovery due to the strong rural sentiments and rise in preference for personal mobility to follow social distancing norms.
- Tractor sales might outperform other segments given the good Rabi-crop procurement, early monsoon leading to better Kharif sowing and farm labour shortage.
- However, the pressure would continue on commercial vehicles as it is one of the worst-affected segments due to “excess capacity and limited drive availability.”
Analysts at Nirmal Bang said the two-wheeler segment is expected 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.
The broking firm expects tractor sales to outperform other segments given the good Rabi-crop procurement, early monsoon leading to better Kharif sowing and farm labour shortage.
However, it 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.”
“The retail sales are expected to be better than wholesales as Original equipment manufacturer (OEM) dispatches have been relatively lower. Dispatches from OEMs are likely to improve sequentially on the gradual ramp-up in plant utilization levels on the back of the recovery in supply chain and labour issues but are expected to be lower on YoY basis,” according to a report from Nirmal Bang, a broking firm.
Maruti Suzuki India | June 2020 sales | June 2019 sales | Drop in sales % |
Domestic sales | 48,502 | 114,861 | 57.80% |
Exports | 5,416 | 9,847 | 45% |
Total sales | 53,918 | 124,708 | 56.80% |
Mahindra & Mahindra | June 2020 sales | June 2019 sales | Drop in sales % |
Automotive | 14,417 | 42,547 | 66.10% |
Farm Equipment | 32,000 | 33,094 | 3.30% |
Total Sales | 46,417 | 75,641 | 38.60% |
Bajaj Auto | June 2020 sales | June 2019 sales | Drop in sales % |
Motorcycle | 213,633 | 351,291 | 39.20% |
Three-wheeler | 21,218 | 53,333 | 60.20% |
Exports | 129,204 | 175,399 | 26.30% |
Total | 234,851 | 404,624 | 42% |
Hero MotoCorp | June 2020 sales | June 2019 sales | Drop in sales % |
Motorcycle | 388,411 | 616,526 | 37% |
TVS Motor Company | June 2020 sales | June 2019 sales | Drop in sales % |
Two-wheeler | 170,077 | 283,461 | 40% |
Three-wheeler | 5,184 | 13,641 | 62% |
Total | 175,260 | 297,102 | 41% |
Ashok Leyland | June 2020 sales | June 2019 sales | Drop in sales % |
MHCV | 843 | 8,427 | 90% |
LCV | 1,753 | 4,383 | 60% |
Total sales | 2,596 | 12,810 | 79.70% |
Eicher Motors | June 2020 sales | June 2019 sales | Drop in sales % |
VECV | 1,801 | 4,502 | 60% |
Royal Enfield (RE) | 35,003 | 58,339 | 40% |
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