Maruti Suzuki, Hyundai and others see sales plunge by 80% in May with exports taking a massive hit during the lockdown
- The Indian automobile sector reported a sharp decline in monthly sales for May 2020.
- Companies continue to struggle under the partial resumption of plants and lower production.
- Automobile sales in India have taken a massive hit since March 23 — when the government announced a nationwide lockdown to deal with the COVID-19 pandemic.
AdvertisementThe sales of India’s COVID-19-battered automobile companies in May remained at historic low levels as factories came back to life and dealerships opened up — but customers continued to stay away.
Automobile sales in India were already on a downtrend in India for over a year. It has only gotten worse since March 25 when the government announced a nationwide lockdown to deal with the COVID-19 pandemic.
Both production and sales came to a grinding halt and makers could not sell a single unit in April — despite running offers and schemes to try and boost sales. Some factories restarted in May, but the monthly auto sales data is far from encouraging.
“While most auto manufacturers have received permission and have opened their plants, the entire production ecosystem is yet to fall in place due to supply-side constraints, permission to operate with the limited workforce at plants and limited support from dealers and financiers,” said a report from Nirmal Bang, a broking firm.
It expects the pressure to continue as commercial vehicles is one of the worst-affected segments due to “excess capacity and limited drive availability.”
|Maruti Suzuki India||May 2020 sales||May 2019 sales||Drop in sales %|
|Escorts||May 2020 sales||May 2019 sales||Drop in sales %|
|Hyundai Motor India||May 2020 sales||May 2019 sales||Drop in sales %|
|Mahindra & Mahindra||May 2020 sales||May 2019 sales||Drop in sales %|
|TVS Motor Company||May 2020 sales||May 2019 sales||Drop in sales %|
|Royal Enfield (RE)||May 2020 sales||May 2019 sales||Drop in sales %|
SEE ALSO: May monthly auto sales data is unlikely to fire up the spirits
HUL CEO says the product inventory range will be smaller and simpler hereon— analysts believe others may have the same plan
Popular on BI
- India's foreign exchange reserves fall to $573 bn
- India's retail inflation dropped below 7% in July for the first time in four months
- Samsung announces Galaxy Watch5 Series with sleep tracking and IR temperature sensor
- India's exports rose to $36 billion in July; trade deficit almost triples
- Rupee, bond yield ends almost flat ahead of the long weekend