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Dhwani Mehta made post

How do you see the June auto sales of companies like Maruti, Mahindra & Mahindra as well as Escorts in the light of the lockdown?

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Khushi Patel answered.
1 month ago

With the lockdown partially withdrawn in June, the numbers showed some improvement but still way below the previous year numbers. For example, June auto sales displayed a sharp fall in auto numbers on a YOY basis especially in the passenger cars segment. From Maruti to Hyundai to Toyota the fall in monthly sales was around 50-60% on a YOY basis.

The cuts in passenger car sales were much steeper for companies like Tata Motors and M&M. That was because their cars were already having demand problems and their erstwhile diesel oriented model was not really working with diesel becoming more expensive than petrol. However, there was a silver lining in the form of tractor sales.

Two of the major tractor companies in India, Escorts and M&M, reported nearly 20% growth in tractor sales for the month of June. That was quite gratifying in a tough month. Hopes of a positive monsoon, early traction in rural demand as well as limited impact of COVID-19 lockdown on rural India helped the rural and agricultural demand to pick up faster.