Slowdown Blues: TVS Motor reports 18 per cent slump in total sales in August
BusinessToday.In September 3, 2019
TVS Motor Company, the country's third-largest two-wheeler manufacturer, is the latest auto player to report a sales slump in August, as the sector continues to reel under one of the worst slowdowns in its history. In a regulatory filing on Tuesday, the company reported total sales of 290,455 units in the last month, down over 18 per cent from 343,217 units in August 2018. However, on a month-on-month basis, sales went up 4 per cent in August.
Domestic two-wheeler registered sales of 219,528 units in the month under review, down 25.5 per cent year-on-year, but exports increased 4 per cent to 56,323 units in the same period. Total motorcycle sales of the company, which stood at 109,393 units in August 2019, showed a steeper fall of 20.4 per cent compared to a nearly 16 per cent fall in scooter sales to 109,272 units.
However, TVS Motor's three-wheeler sales grew by 11 per cent to 14,604 units registered in August 2019. The company reported that its total exports grew by 6 per cent year -on-year, from 66,028 units in August 2018 to 69,702 units in the last month.
Similarly, Hero MotoCorp, India's largest two-wheeler manufacturer, saw August sales plummet over 20 per cent to 685,047 units, while Royal Enfield-maker Eicher Motors reported a 24 per cent decline to 52,904 units. Several car makers, including Maruti Suzuki India, Hyundai, Mahindra & Mahindra, Tata Motors and Honda, have also posted double digit decline in sales.
Tracking the fall in sales, the BSE auto index tanked 255 points to 15,513 on Tuesday compared to the previous close of 15,768 on Friday. The Nifty auto index too fell 121 points to 6914 level in early trade. However, TVS Motor's stock is still in the green currently, up 1.94 per cent at Rs 359.75 apiece.