India’s auto sales tumbled in March affecting the annual performance of the auto sector compared to the previous year. COVID-19 outbreak has caused production and sales disruption for most companies with total auto sales dropping by around 52pc in the month.
In March not only the auto industry but the entire global economy faced an unprecedented disruption. Interruptions in the supply chain halted production amid announced lockdowns which lead to a drop in sales.
The global auto sector at present is reeling under a loss of production and increased vehicle stock in the factories which could not be dispatched either in domestic or international markets said TVS motors.The company started production transition to BS-VI compliant vehicles in the December quarter of 2019. TVS has entirely sold all BS-IV vehicles and is gearing up to focus on its BS-VI range once the market opens.
A statement by Maruti says sales in March 2020 were not comparable those in the year prior due to the suspension of operations effective March 22 after the lockdown announcement. Tata Motors’s sales were deeply impacted by the COVID-19 lockdown and production transition to BS-VI compliant vehicles, according to the company’s statement. The company has sold almost all the BS-IV vehicles, few of which await registration process amid the lockdown.
Mahindra & Mahindra sales performance in March was muted for the same reasons as other automakers. The company had planned to ramp up production of BS-VI compliant vehicles between February and March, which was affected due to unavailability of parts from global and local suppliers. Many vehicles sold by the company are yet to be registered as regional transport authority offices remain shut.
Hero MotoCorp has also cited production halts at its units worldwide as the reason behind the decline in March sales. On March 22, the company proactively suspended production at all its manufacturing facilities at India, Colombia, Bangladesh and Global Parts Centre (GPC) at Neemrana until April 14, 2020.
|Sales units||Mar-20||Mar-19||Pc Change||2020||2019||Pc Change|
|Mahindra & Mahindra||7,401||62,952||-88%||476,043||608,596||-22%|
|Hero Moto Corp||334,647||581,279||-42%||6,409,719||7820739||-18%|