Coronavirus impact: TVS registers 55% drop in two-wheeler sales
BusinessToday.In April 2, 2020
TVS Motor has registered a fall of 55% in two-wheeler sales in March 2020 as compared to the same month last year.
TVS sold 1,33,988 units this month against 3,10,885 units in March 2019. Domestically, the motorcycle giant sold 94,103 units in March 2020 against last year's 2,47,694.
Motorcycle sales were down from 1,41,086 in March last year to only 66,673 in March this year. Scooter sales too saw a year-on-year decline from 98,447 to 34,191 for March.
Exports sales also saw a decline in numbers. The company sold 76,405 units in exports in March 2019 but sold 50,197 units in March 2020.
The fall in sales is due to a combined effect of the coronavirus lockdown and an already slowing automobile market. The company had registered sales for 37.57 lakh units in FY19 but sold only 30.89 lakh units in FY20, a fall of 17.7%.
Three-wheelers too saw a fall in sales from March 2019 to March 2020 mainly because of the coronavirus lockdown. It fared better in FY20 as it saw a rise in sales by 11 per cent from the previous fiscal year.
Every Indian automobile company has reported a year-on-year fall in March sales. India's largest automobile manufacturer, Maruti Suzuki reported a drop of 47.4 per cent, Mahindra and Mahindra reported an 88 per cent decline. Hyundai posted a fall of 47.21 per cent.
To add to this, automobile companies had to spend a lot of money in shifting to BS-VI compliant engines from older models. The BS-VI norms came into effect on April 1, 2020.