Indian auto sales fall 77pc in May amid lockdown

Sales by major automakers in India plunged by 77pc in May from the prior-year period. Though sales picked up from near zero in April, the distressed auto sector faced unprecedented disruptions with a continued demand slump.  

Maruti Suzuki sold 18,539 vehicles in May, down by 86pc from the year prior. The company resumed manufacturing operations at Manesar on May 12, at Gurugram on May 18 and at Gujarat on May 25, after a few lockdown restrictions were eased.

Hero MotoCorp sales fell nearly by 83pc in May from the year prior, said the two-wheeler maker on Monday. All six of its manufacturing plants in India have resumed operations with limited capacity. Hero’s overseas plants in Colombia and Bangladesh have also restarted production.

Sales by TVS motors in May fell by 81pc from the year prior as the company kept its plants and dealerships shuttered.  The company resumed operations in Nalagarh, Mysore and Hosur in the first week of May with extensive safety measures, said the company.

Bajaj Auto total sales dropped by 70pc in May from the year prior to 127,128 units with exports outpacing domestic sales. Sales of two-wheelers in the domestic market were 39,286 units, down by81pc from a year ago, while 73,512 units were exported in the month, down by 54pc from May 2019.

Companies catering to the agricultural segment performed relatively better than passenger vehicle sales. Sales by Mahindra & Mahindra (M&M) and Escorts declined by 1pc and 4pc, respectively, in May from the prior year. The agriculture segment received better benefits from the stimulus packages which boosted sales of farm equipment.

Commercial vehicle and Royal Enfield manufacturer Eicher Motors’ sales fell by 69pc in May from the year prior. Royal Enfield resumed partial operations on May 6 at its Oragadam facility. A second shift was started at the facility in May end. Several dealerships also reopened, said the company in its press statement.

Commercial vehicles producer Ashok Leyland’s total sales fell by 89pc from the prior year. Truck sales were 266 units, down by 96pc while Bus segment recorded zero sales hitting overall May sales. Light commercial vehicle segment fared better with 1154 units sold, however, down by 73pc from May 2019.