Even as automobile manufacturers were slowly shifting to stricter transmission norms amid the economic slowdown, the COVID-19 outbreak worsened the troubles. Leading manufacturers including Maruti Suzuki, Mahindra & Mahindra, Toyota and Hyundai recorded a sharp decline in sales, owing to production shutdown amid coronavirus outbreak. "Majority of the automobile companies reported disappointing volume performance for March 2020, way below estimates. Tractor segment performed better with a lower decline to the tune of approximately 40 per cent while CVs are the worst performer with a sharp fall of more than 75 per cent among all the segments of automobile. Sales were impacted by nationwide lockdown and BS6 transition. We expect similar deterioration in volumes over next 1-2 months due to ongoing lock down amid COVID-19 issue," Mitul Shah, Vice President (Research), Reliance Securities, said.
The largest passenger vehicle make in the country posted a 47 per cent year-on-year fall in sales in March 2020 on account of countrywide lockdown. Maruti Suzuki sold 83,792 units in March 2020. This includes 76,976 units in the domestic market, 2,104 units of domestic OEM sales and 4,712 units of exports. In FY20, Maruti Suzuki sold 1,563,297 units, down 16.1 per cent from 1,862,449 units in FY19.
Mahindra & Mahindra
Mahindra & Mahindra (M&M) reported an 88 per cent decline in total sales at 7,401 units in March. In the same month last year, the company had sold 62,952 units. In the passenger vehicles segment, it sold 3,384 vehicles in March this year, against 27,646 vehicles in the same month last year, down 88 per cent. In the commercial vehicles segment, M&M sold 2,325 vehicles as against 24,423 units earlier, a fall of 90 per cent.
The sales of Tata Motors fell 84 per cent year-on-year to 11,012 units in March. In the year-ago period, 68,727 units were sold by the company. The domestic sales fell down 84 per cent at 11,012 units as against 68,727 units. Similarly, commercial vehicle (CV) sales went down 87 per cent at 7,123 units as against 56,536 units. The passenger vehicle (PV) sales slipped to 68 per cent at 5,676 units as against 17,810 units.
Hyundai Motor posted a 47.21 per cent decline in total sales at 32 279 units in March. In the same month last year, the company had sold 61,150 units, HMIL said in a statement. The domestic sales were down 40.69 per cent to 26,300 units as against 44,350 units in March 2019.
The sales of tractor maker Escorts fell 54.3 percent on-year to 5,228 units in March. In the year-ago period, the company sold 11,905 tractors. The domestic tractor sales were recorded at 5,228 in March 2020 against 11,431 a year ago. The exports dipped to 216 from 474 last year.