Auto Sales In June 2020: Tata Motors Declines 82%, TVS Motor Dips 33%
Indian automakers are reporting their sales data for June today, amid supply-chain constraints emerging out of the recent India-China border conflict and lingering effects of a lockdown.
Factory-gate shipments of passenger cars, two-wheelers and commercial vehicles fell in the range of 6%-79% year-on-year in June, data compiled from the reports of three brokerages—Nomura, Emkay Global and Motilal Oswal—showed. There, however, was a significant uptick compared to the previous month on improving rural demand and preference for personal vehicles amid the pandemic.
That improving rural sentiment is likely to reflect in tractor sales that likely normalised to pre-pandemic levels in June, analysts said. Rural India also led the recovery in car and two-wheeler sales, as urban demand remained muted.
Here’s a look the auto sales in June 2020 (company data):
Tata Motors' Total Sales Dip 82% Year-On-Year To 23,845 Units
Total domestic sales of Tata Motors Ltd. fell 82% year-on-year to 23,845 units, the Mumbai-based automaker said in an exchange filing on Wednesday. The company had sold 1,31, 879 units a year ago.
- Total commercial-vehicle sales fell 90% year-on-year to 10,476 units.
- Total passenger-vehicle sales fell 61% year-on-year to 14,571 units.
As on June 30, 2020, Tata Motors had cash and cash equivalents of more than Rs 5,000 crore and undrawn committed facilities of Rs 1,500 crore.
TVS Motor Sales Fell 33.2% Year-On-Year To 198,387 Units In June
Sales of TVS Motor Co. Ltd. fell 33.2% year-on-year to 1,98,387 units in June. The firm, which primarily makes two-wheelers and three-wheelers, had sold 2,97,102 units in June 2019.
- Total two-wheeler sales stood at 1,91,076 units
- Domestic two-wheeler sales stood at 1,44,817 units
- Total exports declined to 53,123 units
TVS Motor said it resumed operations in a graded manner across its factories in Hosur in Tamil Nadu, Mysuru in Karnataka, and Nalagarh in Himachal Pradesh. "The market is opening up gradually post the lockdown, and we are witnessing a positive uptake in both domestic retail as well as exports,” the Chennai-based firm said in an exchange filing on Wednesday.
The company faced supply chain constraints in June. However, it has undertaken various countermeasures, some of which have started yielding results in June itself. TVS Motor expects to overcome these issues in the month of July.
Hero MotoCorp Sales Quadrupled Month-On-Month In June
Sales of Hero MotoCorp Ltd. quadrupled month-on-month to 4,50,744 units in June, in an indication of revival of consumer demand, India’s largest two-wheeler maker said in a statement on Wednesday.
According to the company, the majority of the demand emanated from rural and semi-urban markets. It sees the momentum persisting over the next few months due to a normal monsoon, a bumper rabi crop and upcoming festive season.
Pawan Munjal, chairman and chief executive at Hero MotoCorp, saw the resurgence in sales as a clear signal of the resilience of the Indian economy. “This has vindicated our strong belief in the robust fundamentals of the Indian economy,” he said.
Sales are now at 90% of pre-pandemic levels, Hero MotoCorp said, adding that more than 95% of its customer touch points are operational.
Atul Auto Sales Fell Over 70% Year-On-Year In June
Sales of Atul Auto Ltd. fell 71.81% year-on-year to 1,044 units in June, the three-wheeler maker said in an exchange filing on Wednesday.
The Rajkot-based company had sold 3,704 units in the year-ago period. Sales in the April-June quarter fell 85.95% year-on-year to 1,477 units. This indicates that Atul Auto sold just 433 three-wheelers in the first two months of the lockdown.
Mahindra Tractors Records Second Highest June Sales Ever
Sales of Mahindra tractors rose 10% year-on-year to 36,544 units last month, the company said in an exchange filing, thus recording its second best June sales ever.
It sold 35,844 tractors in the domestic market while 700 units were exported.
“We have sold 35,844 tractors in the domestic market during June 2020, a growth of 12% over last year. This is our second highest June sales ever,” Hemant Sikka, president-farm equipment sector at Mahindra and Mahindra, said. “It is expected that this demand will continue to remain buoyant in the coming months."