Summary:
The circumstances have been rather deterrent for the India auto industry for almost a couple of years now. The industry has been gripped by the prolonged slowdown for over a year and then the Coronavirus crisis has taken a toll severely on sales, prolonging the slowdown to a good nine quarters for the first time in the auto industry`s history. That said, with the easing of the lockdown sales and production have gradually started recovering especially in the rural markets but it`s still far from normal, recording unprecedented double-digit decline across segments.
Sales of passenger vehicles went down by 49.59 Per Cent in June 2020 selling 105,617 units as compared to 209,522 units sold in June last year. The passenger car segment took a severe hit recording a slump of 57.98 per cent at 55,497 units against 132,077 units sold in the same month last year. The utility vehicle segment managed with a comparatively lesser decline of 31.16 per cent selling 46,201 units as compared to 67,116 units sold a year ago. The vans segment took the worst hit witnessing a drop of 62.06 per cent at 3919 units as compared to 10,329 units in the same month last year. The sales of two-wheelers in the same month went down by 38.56 per cent at 10,13,431 units as compared to 16,49,475 units sold a year ago.
As far as the first quarter (April - June) of FY2021 is concerned, the passenger vehicle segment has recorded a drastic drop of 78.43 per cent at 153,734 units as compared to 712,684 units in the same period a year ago. Sales of two-wheelers went down by 74.21 per cent at 12,93,113 units as compared to 50,13,067 units sold a year ago. This massive de-growth is majorly attributed to the lockdown in the first month (April) of Q1 when production and sales were stopped and the entire auto industry recorded zero sales across segments. Moreover, sales in subsequent months have been on a slow recovery track given the negative buyer sentiments in urban cities and not all dealerships are operational in metro cities.
The circumstances have been rather deterrent for the India auto industry for almost a couple of years now. The industry has been gripped by the prolonged slowdown for over a year and then the Coronavirus crisis has taken a toll severely on sales, prolonging the slowdown to a good nine quarters for the first time in the auto industry`s history. That said, with the easing of the lockdown sales and production have gradually started recovering especially in the rural markets but it`s still far from normal, recording unprecedented double-digit decline across segments.
Sales of passenger vehicles went down by 49.59 Per Cent in June 2020 selling 105,617 units as compared to 209,522 units sold in June last year. The passenger car segment took a severe hit recording a slump of 57.98 per cent at 55,497 units against 132,077 units sold in the same month last year. The utility vehicle segment managed with a comparatively lesser decline of 31.16 per cent selling 46,201 units as compared to 67,116 units sold a year ago. The vans segment took the worst hit witnessing a drop of 62.06 per cent at 3919 units as compared to 10,329 units in the same month last year. The sales of two-wheelers in the same month went down by 38.56 per cent at 10,13,431 units as compared to 16,49,475 units sold a year ago.
As far as the first quarter (April - June) of FY2021 is concerned, the passenger vehicle segment has recorded a drastic drop of 78.43 per cent at 153,734 units as compared to 712,684 units in the same period a year ago. Sales of two-wheelers went down by 74.21 per cent at 12,93,113 units as compared to 50,13,067 units sold a year ago. This massive de-growth is majorly attributed to the lockdown in the first month (April) of Q1 when production and sales were stopped and the entire auto industry recorded zero sales across segments. Moreover, sales in subsequent months have been on a slow recovery track given the negative buyer sentiments in urban cities and not all dealerships are operational in metro cities.