PremiumHomegrown automakers, Tata Motors Ltd, and Mahindra and Mahindra Ltd on Tuesday announced a sharp decline in wholesale dispatches during May, on a sequential basis, as production activity at factories were hampered by the explosive rise in cases of covid-19. The two Maharastra based companies have been facing disruption since April when covid cases surged in the state.
Tata Motors reported a 40% month-on-month decline in sales of its passenger vehicles to 15181 units when compared to 25095 units in the preceding month. In the commercial vehicles segment, dispatches were down by 35% to 9371 units.
Mahinda and Mahindra also reported a 56.22% drop sequentially in its domestic passenger vehicle wholesale to just 8004 units in May. Dispatches of its tractors also dropped by 12.5% m-o-m to 22843 units.
Manufacturing and sales of automobiles came under pressure from the first week of April when Maharashtra announced strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others followed the suit. Maruti Suzuki India Ltd, Hero MotoCorp Ltd, Hyundai Motor India Ltd and others have either stopped production or reduced output significantly.
Some manufacturers like Tata Motors and Bajaj Auto Ltd continued production with limited capacity. Some firms also shut down plants since deliveries stopped and sales are expected to remain subdued for the next two months.
With covid cases showing signs of decline in the past one week, some automakers have started resuming production but only with single shifts.
“We are seeing a strong growth momentum for our entire product portfolio. The Thar is clocking robust bookings, despite extended waiting periods. XUV300 has been a tremendous success and continues to see strong demand. Our power brands (Scorpio and Bolero) continue to do well. With the cases coming down and the gradual opening up of markets, we foresee a strong demand rebound. We are working closely with our supplier partners to manage supply chain issues and meet the market demand," said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.
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