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Auto sales decline from a year ago as Covid-19 hurts; tractors buck the trend
Mumbai: Automakers reported disappointing sales figures for the month of July in all segments barring tractors in comparison with year-ago on account of Covid-19 induced lockdowns. Nevertheless, the numbers improved on a sequential foundation and the restoration is anticipated to be gradual.
Aside from demand points, supply-side pressures are additionally weighing on auto firms in gentle of the pandemic.
Tractor sales though bucked the trend on the again of hopes of a regular monsoon, a strong sowing season and authorities expenditure in rural areas.
High carmaker Maruti Suzuki mentioned its sales in July got here in at 108,064 items, a decline of 1.1 per cent from a year ago, however a soar of 88.2 per cent from the month earlier than.
This contains home sales of 100,000 items and 1,307 items for different OEMs in the home market, whereas the firm exported 6,757 items in the month.
Final week, Maruti Suzuki reported Rs 249 crore quarterly loss, first since its itemizing in 2003, however mentioned it was seeing extra first time patrons coming to its sellers. Nevertheless, alternative shopping for has fallen.
Mahindra & Mahindra’s total automotive sales – home and exports – stood at 25,678 items in July, in contrast with 40,142 items a year ago.
In the passenger autos phase, Mahindra offered 11,025 autos in July towards 16,831 a year earlier than.
In the industrial autos phase, the firm offered 13,103 autos in July 2020, as towards 15,969 autos a year ago. Exports for the month of July have been at 1,467 autos.
Mahindra & Mahindra’s Farm Gear Sector (FES) mentioned its complete tractor sales (home + exports) throughout July have been at 25,402 items as towards 19,992 items for the identical interval final year. Home sales in July have been at 24,463 items, as towards 19,174 items a year ago. Exports for the month stood at 939 items.
“These are our highest ever July (tractor) sales. The sturdy demand momentum continued, aided by optimistic sentiments because of good money flows to farmers, larger Kharif sowing, a well timed and regular monsoon cumulatively throughout June and July and continued larger rural spending by the authorities,” mentioned Hemant Sikka, President – Farm Gear Sector, Mahindra & Mahindra.
Sikka admitted that localized lockdowns in sure states and Covid-related affect on particular suppliers led to produce facet challenges throughout the month, however he expects the sentiment to stay buoyant translating into strong tractor demand in coming months.
Escorts mentioned its home tractor sales in July got here in at 4,953 items registering a progress of 9.9 per cent towards 4,505 items from a year ago, whereas its export tractor sales in July stood at 369 items, registering a progress of three.9 per cent towards 355 items offered a year ago.
The corporate mentioned it confronted some provide chain challenges in July, particularly with a few suppliers of proprietary objects, and therefore it might function solely at about 50 per cent of its capability, leading to unfulfilled demand.
“The scenario has been repeatedly easing in the previous couple of days of July, and therefore we count on to return to full capability anytime as much as mid-August 2020,” Escorts mentioned in a press launch.
“The provision facet scenario might proceed to be dynamic for an additional couple of months. Our stock ranges, each with the firm and with channel, continues to be at very low ranges. We’re optimistic for the coming months as the rural sentiments proceed to stay optimistic, led by a well timed and widespread monsoon, larger sowing of Kharif crop and enough availability of retail finance,” it added.