Have you read these stories?

Trump said visa curbs will help American job seekers. It won't

There is little credible evidence to suggest these travel bans have any positive impact on the US unemployment.

Auto sales

02 July, 2020, 09:13 PM IST



Auto sales likely to see sequential growth in next 2 months: Report

Both auto and two-wheeler manufacturers reported higher sales in June over May on the back of pent-up demand and revival of economic activities following unlock 1.0, with some of them even logging growth almost to the pre-Covid level.

Auto sales pick up in June, but down y-o-y

Major automobile manufacturers see big dip in June sales, though fared better as compared to May .

M&M records 55 pc fall in total sales at 19,358 units in June

The company had sold 42,547 vehicles in June last year. Domestic sales dropped ...

  • According to industry observers, growth in passenger vehicle sales in the last quarter of the current fiscal will be aided by the low base of the fourth quarter of FY20, when around 657,244 units were dispatched by manufacturers to dealers. This is 22% lower than 844,195 units sold in the year-ago period.

    Experts say demand will depend on fundamentals of the economy and on how the Covid situation evolves.

    Total domestic sales declined by 83 per cent to 40,074 units last month as compared to 2,35,824 units in May 2019, Bajaj Auto said. The company further said its total two-wheeler sales were down 69 per cent at 1,12,798 units as compared to 3,65,068 units in the year-ago month.

    Dealers are far from convinced about the digital strategy. While online enquiries have increased in the past few weeks, they’re not getting converted into sales, dealers said. “Web enquiries have overtaken walk-ins and are likely to continue post-Covid,” said Shashank Srivastava, ED, marketing & sales, Maruti Suzuki.

    SIAM President Rajan Wadhera and ETAuto.com Editor Nabeel A. Khan talk where does the Indian auto industry stand amid COVID-19, learnings an...

    Pharma and fertilisers sectors showed resilience, with positive quarterly revenue growth on yoy basis, largely due to their essential nature of service, said the Ind-Ra. It further said equity foreign portfolio investments saw a rebound to near pre-COVID levels during the first week of June 2020, reaching Rs 21,900 crore, whereas the debt segment saw a sell-off to the tune of Rs 1,600 crore.

    Industry estimates and numbers released by key auto companies showed vehicle sales at 37,000 in May, an 85 per cent fall from a year earlier. In April, production as well as dispatches had come to a complete halt. Mahindra & Mahindra and MG Motor did a little better than peers with May sales constituting a higher percentage of the February 2020 numbers.

    The rise in diesel price has wiped out the gains from the lower running cost of diesel vehicles.

    The Department of Heavy Industries (DHI) has sought feedback from auto industry groups on the initial proposal, which suggests giving incentives over five years to increase local production and procurement for export, the sources said.

    Passenger vehicles sales are predicted to dip 25% on the low base of FY20 when sales declined 18%. Commercial vehicles sales were predicted to decline 27%. Demand is predicted to sharply rebound in FY22, with a double-digit growth, albeit on the extremely low base.

    Federation of Automobile Dealers’ Association (FADA) has urged automakers to fix minimum dealer margin at 7% on selling price of the vehicle to help restrict job losses in the sector that employs four million personnel directly and indirectly, and make “this business model more sustainable, shockproof and comparable to international standards”.

    Commenting on the sales performance, Sonalika Group Executive Director Raman Mittal said the company's investment in the vertical integrated manufacturing unit helped it to ramp up production within a very short span of lockdown relaxation.

Load More...

Other useful Links

Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service