scorecardMay monthly auto sales data is unlikely to fire up the spirits
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May monthly auto sales data is unlikely to fire up the spirits

May monthly auto sales data is unlikely to fire up the spirits
IndiaIndia7 min read
MARUTI STOCKYARD IN MANESAR AS SEEN FROM KASAN --------- PHOTO BY INDRANIL DAS    BCCL
  • The Indian automobile sector is expected to report a sharp decline in monthly sales for May 2020 due to partial resumption of plants and lower production.
  • Automobile sales in India have taken a massive hit since March 23 — since the government announced a nationwide lockdown to deal with the COVID-19 pandemic.
  • The report further expects the car manufacturer Maruti Suzuki to report an overall 73.3% drop in its May sales.
  • The report also expects TVS Motors to experience around 78% drop in May sales.
Automobile sales in India were already on downtrend in India for over a year. It has gotten worse since March 25⁠ when the government announced a nationwide lockdown to deal with the COVID-19 pandemic and many companies to halt operations.

Both production and sales came to a grinding halt and makers could not sell a single unit in April. Some factories restarted in May but the monthly auto sales data will be far from encouraging, according to a report from Nirmal Bang, a broking firm.

“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 the report.

Here’s the estimated drop expected in May automobile sales, according to Nirmal Bang

Maruti Suzuki India

May 2020 sales (expected)

May 2019 sales

May sales %

Domestic sales

33,500

125,552

-73.30%

Exports

2,500

9,089

-72.50%

Total sales

36,000

134,641

-73.30%

Mahindra & Mahindra

May 2020 sales (expected)

May 2019 sales

May sales %

Automotive

9,500

45,421

-79.10%

Farm Equipment

18,000

24,704

-27.10%

Total Sales

27,500

70,125

-60.80%

Bajaj Auto

May 2020 sales (expected)

May 2019 sales

May sales %

Motorcycle

95,000

365,068

-74%

Three-wheeler

9,000

54,167

-83.40%

Total

104,000

419,235

-75.20%

Hero MotoCorp

May 2020 sales (expected)

May 2019 sales

May sales %

Motorcycle/scooter

95,000

652,028

-85.40%

TVS Motor Company

May 2020 sales (expected)

May 2019 sales

May sales %

Two-wheeler

65,000

294,326

-77.90%

Three-wheeler

3,500

12,780

-72.60%

Total

68,500

307,106

-77.70%

Ashok Leyland

May 2020 sales (expected)

May 2019 sales

May sales %

MHCV

400

8,946

-95.50%

LCV

1,000

4,226

-76.30%

Total sales

1,400

13,172

-89.40%

Eicher Motors

May 2020 sales (expected)

May 2019 sales

May sales %

VECV

350

4,750

-92.60%

Royal Enfield (RE)

12,500

62,371

-80%


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