
Auto Sales In May 2020: Royal Enfield Declines 69%, Hero MotoCorp Falls 82%
After zero sales in April, Indian automakers opted for selling cars online as the coronavirus-led lockdown kept most dealerships shut for the second month in a row.
The automakers made a cautious return to production in May after the stay-at-home restrictions were eased to spur economic activity. Exports continued but they form a small part of annual auto sales in India. And while online car sales may simply be a lockdown-spurred fad, it hasn’t deterred automakers from trying.
Here’s a look at the auto sales in May 2020:
Royal Enfield Sales Fell 69% In May, Eicher Motors Says
Sales of Royal Enfield motorcycles fell 69% year-on-year to 19,113 units in May, parent Eicher Motors Ltd. said on Monday. The company sold 62,371 units in the year-ago period.
Break-up of Royal Enfield sales in May 2020:
- Upto 350 cc motorcycles: 17,543 units versus 55,833 a year ago.
- Over 350 cc motorcycles: 1,570 units versus 6,538 a year ago.
The company's exports fell 68% year-on-year to 684 units.
Royal Enfield resumed operations at its manufaturing facilities on May 6, 2020, Eicher Motors said in an exchange filing. Nearly two-thirds of the company's dealerships are operational now.
Hero MotoCorp's Sales Fell Nearly 83% In May
Sales of Hero MotoCorp Ltd. fell 82.71% year-on-year to 112,682 units in May, India’s largest two-wheeler maker said Monday. The company had sold 652,028 motorcycles and scooters in the year-ago period.
Break-up of the company’s sales in May 2020:
- Motorcycles: 106,038 units versus 606,216 a year ago.
- Scooters: 6,644 units versus 45,812 a year ago.
Hero MotoCorp sold 108,848 units in India while 3,834 units were exported, the firm said in a statement.
All six manufacturing facilities of the company in India have now resumed operations with limited production, according to the statement. Its plants in Colombia and Bangladesh also restarted production during May.
Nearly 5,000 customer touch-points of Hero MotoCorp have re-opened with strict safety measures in place, according to the restart manual shared by the company. These outlets contribute 85% of the company’s domestic sales.
Mahindra's Domestic Tractor Sales Grew 2% In May
Sales at Mahindra and Mahindra Ltd.'s farm equipment division remained nearly flat in May, indicating that India’s agri sector may have benefited from the relaxation in the coronavirus-induced lockdown.
The company sold 24,017 tractors last month, or 2% more than the 23,539 units sold in the year-ago period. Exports took a nosedive—falling 72% to just 324 units.
“The timely relaxation of the lockdown for the agricultural sector helped ensure the speedy recovery of tractor demand during May,” Hemant Sikka, president-farm equipment sector at Mahindra and Mahindra, said in a statement.
Going ahead, Sikka sees farmer sentiment remaining positive due to robust rabi crop production, higher procurement, good price realisations and the forecast of a normal monsoon that bodes well for a good kharif crop.
“All these augur well for tractor demand going forward,” he said.
Mahindra's Auto Sales Declines 79% In May
Sales of Mahindra and Mahindra Ltd.’s auto division declined 79% year-on-year to 9,560 units in May, the company said in a statement on Monday.
Break-up of Mahindra’s auto sales in May:
- Passenger vehicles: 3,867 units versus 20,608 units a year ago.
- Commercial vehicles: 5,170 units versus 17,879 units a year ago.
- Exports: 484 units versus 2,365 units a year ago.
The company’s overall automotive sales (domestic + exports) stood at 9,560 units in May 2020, compared to 45,421 units during May 2019.
“We have opened 70% of our dealerships and retail sales have begun,” Veejay Nakra, chief executive officer at Mahindra’s automotive division said in the statement.
“We are seeing initial traction for our small CVs and SUV brands such as the Bolero and Scorpio. As new lockdown norms are being announced we are hopeful of demand gaining traction in the coming months,” he said.
Hyundai Car Sales Decline 79% In May
Hyundai Motor India Pvt. Ltd. has reported a 78.7% decline in total sales at 12,583 units in May. The company had reported sales of 59,102 units in May 2019.
Domestic sales during the last month were down 83.8% to 6,883 units as against 42,502units in May 2019. The company said it exported 5,700 units during the last month as compared to 16,600 units in May last year.
"The company has made a humble beginning towards normalcy by registering sales of 12,583 for the month of May," Tarun Garg, Hyundai India's director for sales, marketing and service, said in a statement. “This performance was possible on account of strong customer interest and demand for products like Creta, Verna and Venue.”