June Auto Sales Live: Bajaj Auto, MG Motor, Escorts Deliver Strong Sequential Sales Growth

Sales of MG Motor India rose by three-fold in the month of June to 3,558 units as the phasing out of lockdown led to increase in enquiries and bookings, the company said in the statement.

The automaker had sold 1,016 units in May.

“We are seeing early signs of positive consumer sentiment in June and potential purchases due to pent-up demand, which was on hold due to the pandemic," Rakesh Sidana, Director – Sales, MG Motor India, said in the statement.

Sidana said even though some markets are still under lockdown, he expects the demand to increase during the festival season.

Besides the potential third wave threat, the company's production levels will remain to be impacted in July-August due to the global shortage of semiconductor chips.

Bajaj Auto Ltd. too reported strong pickup in sales in June.

The Pune-based automaker sold 3,46,136 units in June, an increase of 27.3% over May, according to its exchange filing.

Sales snapshot (M-o-M)

• Total domestic two-wheeler sales more than doubled to to 1,55,640 units.

• Total two-wheeler exports fell 14% to 1,54,938 units.

• Total commercial vehicle sales rose 13.5% to 35,558 units.

Escorts Ltd.’s agri machinery segment sold 12,533 tractors in June, the company said in a statement to the exchanges on Thursday.

The automaker's tractor sales rose 95.1% over the last month as the lockdown restrictions started to ease in a scattered manner across the country.

In the domestic market, Escorts sold 11,956 units, while in overseas markets it sold 577 units.

"The on-ground situation eased in June as the second wave of pandemic started diluting," the company said in the filings, adding that most of its dealerships were open except in few pockets.

Escorts added that the company's inventory levels remained normal, and it remain optimistic for the rest of the fiscal year due to timely and expected above-normal monsoon, increase in MSP prices, and record direct procurement by government.

"The commercial activity also is expected to gain further momentum in the ensuing months."

However inflation continues unabated beyond industry expectations and continues to put pressure on the margins.

"While we are trying to offset a part of this through internal cost control measures, we have announced a significant price hike effective July 1 on all tractors."

Sales of automobiles in June are expected to improve across segments as lockdowns imposed to curb the deadlier second Covid-19 wave eased gradually.

The recovery trends, however, may vary from state to state.

Auto sales had slumped in May over the preceding month on fresh curbs in several states and companies suspending manufacturing.