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

MARUTI STOCKYARD IN MANESAR AS SEEN FROM KASAN --------- PHOTO BY INDRANIL DASBCCL
  • 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.

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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%

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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