May monthly auto sales data is unlikely to fire up the spirits
- 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
- The report further expects the car manufacturer
Maruti Suzukito report an overall 73.3% drop in its May sales.
- The report also expects TVS Motors to experience around 78% drop in May sales.
AdvertisementAutomobile 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 %|
|Mahindra & Mahindra||May 2020 sales (expected)||May 2019 sales||May sales %|
|Bajaj Auto||May 2020 sales (expected)||May 2019 sales||May sales %|
|Hero MotoCorp||May 2020 sales (expected)||May 2019 sales||May sales %|
|TVS Motor Company||May 2020 sales (expected)||May 2019 sales||May sales %|
|Ashok Leyland||May 2020 sales (expected)||May 2019 sales||May sales %|
|Eicher Motors||May 2020 sales (expected)||May 2019 sales||May sales %|
|Royal Enfield (RE)||12,500||62,371||-80%|
SEE ALSO: Renault to axe 15,000 jobs worldwide— 1,500 employees in India await their fate
The plight of India’s largest car maker causes Japanese giant Suzuki’s first revenue decline in three years
TVS Motors profit falls 43.3% due to one-time hits like COVID-19 and dealer discounts for BS-VI transition
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