Business

Maruti, Hyundai sales skid

Tata Motors, M&M too hit by nationwide lockdown

Already reeling under a prolonged slowdown and the transition to BS-VI fuel norms, auto sector saw its woes being compounded by the 21-day nationwide lockdown. Manufacturers witnessed a decline in sales in the range of 44%-90% in their domestic wholesales in March 2020.

The country’s largest carmaker Maruti Suzuki posted a 47.4% decline in passenger vehicles (PVs) in the domestic market to 76,240 units, compared with the more than 1.45 lakh units sold in March 2019. The company, however, said that sales during March 2020 were not comparable with that in March 2019 “due to the suspension of operations with effect from March 22, 2020, in line with national policy.”

Exports during the month also fell 55% to 4,712 units as against 10,463 units in March 2019. For the full year (2019-20), the company’s domestic vehicles sales fell 18.1% to 14.36 lakh units from the previous year.

Hyundai Motor India too saw a 40.6% decline in sales to 26,300 units in March in the domestic market.

Tata Motors’ domestic passenger vehicle sales fell 68% to 5,676 units. For the full year, PV sales declined 38% to over 1.31 lakh units.

Similarly, Mahindra and Mahindra sold 3,384 PVs in March 2020 in the domestic market, a decline of 88% from 27,646 units in the year-ago month. For fiscal year 2019-20, domestic PV sales fell 27% to 1.86 lakh.

Veejay Ram Nakra, CEO, Automotive Division, M&M Ltd. said, “Our performance in March has been muted on account of the impact of the current lockdown related to Covid-19 and the disruption in our BS-VI ramp-up plan. The latter was planned between February and March but was affected due to the challenges of parts supply from global and local suppliers. We have been able to clear our BS-IV inventory, but for fewer than 100 vehicles. However, there are many vehicles that are sold, but not yet registered because of the closure of RTOs.”

Relatively new entrant Kia Motors sold 8,583 units in the retail market in March 2020.

Naveen Soni, Senior VP, Sales and Service, Toyota Kirloskar Motor (TKM), said, “... last month has been very challenging for us, both in sales as well as production,” adding the pandemic has financially impacted all its dealerships across India. TKM reported a 55% decline in sales to 7023 vehicles in March in the domestic market. It added that March was the last month of production for the Etios series as well as the Corolla Altis.

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Printable version | May 30, 2020 8:50:13 PM | https://www.thehindu.com/business/maruti-hyundai-sales-skid/article31230987.ece

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