Auto Sales In August 2020: Hero Motocorp, Maruti Suzuki Sales Rise On Festive Boost
The revival in auto sales in India likely gathered momentum in August 2020, with the segment leaders Maruti Suzuki India Ltd. and Hero MotoCorp Ltd. seen outperforming the industry.
The two factors that are causing the resurgence are festive season stocking and an easing supply chain, according to data compiled by BloombergQuint from three brokerages.
India’s automakers were reeling under the worst slowdown in decades even before the coronavirus hit. The world’s strictest lockdown, effective March 25, hammered production and demand at dealerships. After a washout in April, auto sales revived in subsequent months as the nation eased the stay-at-home restrictions.
“August brings with it the beginning of a long festival season, starting with Onam and Ganesh Chaturthi,” said Ashish Kale, president at Federation of Automobile Dealers Association. “The auto industry will start its recovery journey in a linear manner.”
Here's a look at the auto sales in August 2020, as reported by the companies, in sequential as well as year-on-year terms.
TVS Motor Sales Dip 1% Year-On-Year In August 2020
Total sales of TVS Motor Co. Ltd. fell 1% year-on-year to 287,398 units in August 2020. The Chennai-based two- and three-wheeler maker had sold 290,455 units a year ago and 252,744 in the previous month.
- Total two-wheeler sales inched up to 277,226 units from 275,851 units a year ago.
- Domestic two-wheeler sales fell 1% year-on-year to 218,338 units.
- Motorcycle sales were at 1,19,878 units, scooter sales stood at 87,044 units.
- Three-wheeler sales stood at 10,172 units as against 14,604 units a year ago.
TVS Motor said its total exports were at 68,347 units in August 2020 as against 69,702 units in the corresponding period a year ago.
Kia Sells Over 10,000 Seltos In August 2020, Even As Sonet Waits In The Wings
Sales of Kia Motors India rose 74% year-on-year to 10,845 units in August 2020, the South Korean carmaker said in a statement on Tuesday. The company had sold 6,236 units in August 2019—the first month of its operations in the country.
Now, just a year later, the sister brand of Hyundai Motor Co. Ltd. claims to be among the Top 5 carmakers in India with a market share of nearly 6%.
Kia Motors, at present, sells only two models in India—the Kia Seltos SUV and the Carnival MPV. Of the 10,845 units that the company sold in August 2020, 10,655 were Seltos—making it among the best-selling sports utility vehicles in the country.
It now remains to be seen how the carmaker's latest offering, the Kia Sonet, performs. That the Compact SUV garnered over 6,500 bookings on the first day augurs well for its ride ahead.
Hero MotoCorp Sales Rise 7.55% Year-On-Year In August 2020
Domestic sales of Hero MotoCorp Ltd. rose 7.55% year-on-year to 584,456 units in August 2020. That compares with the 543,406 units that India's largest two-wheeler maker sold in the year-ago period and 514,509 in the previous month.
- Motorcycle sales rose 9.24% year-on-year to 544,656 units.
- Scooter sales fell 11.28% year-on-year to 39,798 units.
- Exports fell 18.66% year-on-year to 15,782 units.
A bulk of the two-wheeler demand came from semi-urban and rural areas of the country, Hero MotoCorp said in an exchange filing on Tuesday.
The company is also witnessing "strong retail offtake". Its latest product—the Xtreme 160R—has "received very positive feedback" and increased the company’s market share in the premium segment.
Still, the Pawan Munjal-led firm is cautious. It expects the upward sales trajectory to hold its line in the coming months due to several favourable factors—the upcoming festive season, increasing consumer confidence and continued policy support.
Toyota Kirloskar Sales Dip 48% To 5,555 units In August 2020
Sales of Toyota Kirloskar Motor Pvt. Ltd. fell 48.08% year-on-year to 5,555 vehicles in August 2020. The company had sold 10,701 units a year ago and 5,386 units in July 2020.
"We began August with a lot of apprehensions due to the skewed rise in covid positive cases in Karnataka and throughout the country. It had a resultant impact on both the demand and supply scenarios," Naveen Soni, vice president-sales and service at Toyota Kirloskar said in a statement.
But the carmaker witnessed an increase in for most models in the past month.
"However, supplying vehicles from our end (to dealers) posed as a challenge due to the rising number of Covid-19 cases in Bangalore and its surrounding areas, where most of our workforces reside,” Soni said. “This even led us to ramp down production to single shift...to ensure that we are taking all measures to safeguard the health and safety of our employees.”
More than half the infected workers have recovered completely and are reporting back to work, he said. "This has helped us immensely in inching up supplies so as to be able to cater to the increasing demand of our customers.
VECV's Total Sales Decline 30% Year-On-Year In August 2020
Total sales of VE Commercial Vehicles Ltd. fell 30% year-on-year to 2,477 units in August 2020, parent Eicher Motors Ltd. said in an exchange filing on Tuesday.
The company had sold 3,538 units in the year-ago period.
- Domestic sales of fell 30.3% year-on-year to 2,190 units.
- Eicher Motors' exports fell 21.4% year-on-year to 250 units.
Only 37 Volvo trucks were sold last month, compared to 76 in the year-ago period.