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Sonalika Tractors on Thursday reported 47.8% increase in total tractor sales at 15,200 units in June. The company had sold 10,286 units in the same month last year.
Commenting on the sales performance, Sonalika Group Executive Director Raman Mittal said the company's investment in the vertical integrated manufacturing unit helped it to ramp up production within a very short span of lockdown relaxation. "We had already reached 80% utilisation in the fourth week of May... in June we continued to operate at optimum level," he said.
Sonalika Tractors had "a series of new products that were launched during this period, which have helped the farmers immensely to increase their productivity, reflecting in volume gain for our tractors", he added.
Total sales of Honda Motorcyles & Scooters India Pvt. Ltd. nearly quadrupled over the previous month to 210,879 units in June. The company had sold 54,820 units in May.
The company exported 8,042 units in the month gone by.
As much as 95% of HMSI's dealerships resumed operations by the first week of June following Unlock 1.0, the company said in a release. With over 150% spike in our retails, June turned out to be the first confidence booster," Yadvinder Singh Guleria, director (sales and marketing) at HMSI, said in the statement.
Sales of Honda Cars India Pvt. Ltd. fell 86.44% to 1,398 in June from 10,314 units in the year-ago period. Exports stood at 142 units last month.
"Amidst the Covid-19 crisis, June was significant for us as we resumed our production partially from mid of the month while exercising utmost caution and highest safety protocols in our plants," Rajesh Goel, senior vice president (sales and marketing) at Honda Cars India, said in a statement. The pace of deliveries is more than double of company's dispatches in June, he added.
The company was in the middle of transition to Bharat Stage-VI emission norms when the coronavirus lockdown was implemented. So, ever since production resumed, the company's priority was to roll out updated versions of Honda City, Honda WR-V, Honda Civic and Honda Jazz.
"Three of these models will be launched in the next two weeks, and accordingly we will progressively ramp up our volumes to cater to the market effectively," Goel said.
Total sales of Royal Enfield motorcyles fell 35% year-on-year to 38,065 units in June, parent Eicher Motors Ltd. said in an exchange filing late on Wednesday. The company had sold 58,339 units in the year-ago period.
The decline in sales was steeper for motorcycles with engine capacity exceeding 350 cc. Royal Enfield sold 52% fewer Himalayan, Interceptor and Continental GT models in the month gone by. In the up to 350 cc category, sales fell 32% 34,890 units.
Exports declined 52% year-on-year to 1,555 units.
The company plans to launch a new motorcycle every quarter for the next 3-4 years, ‘Car & Bike' reported on May 28, starting with the Royal Enfield Meteor in July this year.
Total sales of Bajaj Auto Ltd. fell 31% year-on-year to 278,097 units in June, the Pune-based two-wheeler maker said in a statement on Thursday.
Also Read: Bajaj Auto's Waluj Plant Remains Operational Despite 140 Covid-19 Cases
Sales of Hyundai Motor India Ltd. fell 54.39% year-on-year to 26,820 units in June, the South Korean carmaker said in a statement on Wednesday. The company had sold 58,807 units in June last year.
The company’s updated models have received encouraging response, Hyundai India’s Sales Director Tarun Garg said in the statement, adding that it is committed to support country's objective of reviving the economy at the earliest, he added.
Total domestic sales of Tata Motors Ltd. fell 82% year-on-year to 23,845 units in the April-June quarter, the Mumbai-based automaker said in an exchange filing on Wednesday. The company had sold 1,31, 879 units a year ago.
As on June 30, 2020, Tata Motors had cash and cash equivalents of more than Rs 5,000 crore and undrawn committed facilities of Rs 1,500 crore.
Sales of TVS Motor Co. Ltd. fell 33.2% year-on-year to 1,98,387 units in June. The firm, which primarily makes two-wheelers and three-wheelers, had sold 2,97,102 units in June 2019.
TVS Motor said it resumed operations in a graded manner across its factories in Hosur in Tamil Nadu, Mysuru in Karnataka, and Nalagarh in Himachal Pradesh. "The market is opening up gradually post the lockdown, and we are witnessing a positive uptake in both domestic retail as well as exports,” the Chennai-based firm said in an exchange filing on Wednesday.
The company faced supply chain constraints in June. However, it has undertaken various countermeasures, some of which have started yielding results in June itself. TVS Motor expects to overcome these issues in the month of July.
Sales of Hero MotoCorp Ltd. quadrupled month-on-month to 4,50,744 units in June, in an indication of revival of consumer demand, India’s largest two-wheeler maker said in a statement on Wednesday.
According to the company, the majority of the demand emanated from rural and semi-urban markets. It sees the momentum persisting over the next few months due to a normal monsoon, a bumper rabi crop and upcoming festive season.
Pawan Munjal, chairman and chief executive at Hero MotoCorp, saw the resurgence in sales as a clear signal of the resilience of the Indian economy. “This has vindicated our strong belief in the robust fundamentals of the Indian economy,” he said.
Sales are now at 90% of pre-pandemic levels, Hero MotoCorp said, adding that more than 95% of its customer touch points are operational.
The company has also commenced dispatches of its newest product—the Hero Xtreme 160R—to dealerships across the country. The 160-cc motorcycle will be available in two trims priced at Rs 99,950 and Rs 1.03 lakh (ex-showroom Delhi).
Sales of Atul Auto Ltd. fell 71.81% year-on-year to 1,044 units in June, the three-wheeler maker said in an exchange filing on Wednesday.
The Rajkot-based company had sold 3,704 units in the year-ago period. Sales in the April-June quarter fell 85.95% year-on-year to 1,477 units. This indicates that Atul Auto sold just 433 three-wheelers in the first two months of the lockdown.
Sales of Mahindra tractors rose 10% year-on-year to 36,544 units last month, the company said in an exchange filing, thus recording its second best June sales ever.
It sold 35,844 tractors in the domestic market while 700 units were exported.
“We have sold 35,844 tractors in the domestic market during June 2020, a growth of 12% over last year. This is our second highest June sales ever,” Hemant Sikka, president-farm equipment sector at Mahindra and Mahindra, said. “It is expected that this demand will continue to remain buoyant in the coming months."
Sales of Mahindra & Mahindra Ltd. fell 55% year-on-year to 19,358 units, the automaker said in an exchange filing on Wednesday.
The company's Bolero and Scorpio SUVs, as well as pick-up trucks are witnessing good traction, it said in the statement.
Sales of Volvo Eicher Commercial Vehicles, fell 70.3% year-on-year to 1,358 units in June, parent Eicher Motors Ltd. said in an exchange filing on Wednesday.
Eicher Motors also makes motorycles under the Royal Enfield brand.
Sales of Toyota Kirloskar India Pvt. Ltd. more than doubled month-on-month to 3,866 units in June 2020 on easing lockdown restrictions, the carmaker said in a statement Wednesday.
On year-on-year basis, Toyota's India sales slumped 66% from 11,407 units sold in June 2019.
According to the Fortuner maker, its inventory cost at dealerships has declined 50% compared to a year ago, thereby making the dealer operations more efficient. Most Toyota dealers were able to offload stock held over from May.
The carmaker is also witnessing customer interest shifting towards its entry-level portfolio of cars. "We are monitoring such trends and adjusting our future production according to market demand," Naveen Soni, senior vice president (sales and services) at Toyota Kirloskar Motor, said in the statement.
The company has two manufacuring facilities in India—both at Bidadi in Karnataka.
MG Motor India Pvt. Ltd. sold 2,012 units in June amid supply-chain constraints.
The Indian arm of the British marquee company, a subsidiary of China's SAIC Motor Corp. Ltd., sold 1,867 units of the MG Hector SUV and 145 units of the MG ZS EV in the month gone by.
"Even though our sales performance in June 2020 was better than May this year, we continue to face headwinds in supply chain and logistics due to multiple issues," Rakesh Sardana, director-sales at MG Motor India, said in a statement. "Our teams are doing their best to overcome these challenges and we are looking forward to the launch of the Hector Plus in July.”
The company currently sells into two models in India—the MG Hector and MG ZS EV.
Escorts Ltd.’s tractor sales rose 21.1% year-on-year to 10,851 units in June, the farm equipment maker said in an exchange filing on Wednesday. While domestic sales increased 22.8% to 10,623 units, exports fell 26.9% to 228 units.
“We have seen unprecedented demand in this month... Our inventory levels, both with the company and with channel have been lowest ever,” the company said. “After necessary permissions, we were able to run our factories in multiple shifts to achieve production at about 90% of the capacity. Supply chain situation, though better than before, continues to remain volatile.”
Escorts now expects the tractor industry to grow significantly, backed by pent-up demand due to the lockdown and improving rural sentiment.
Indian automakers are reporting their sales numbers for June today, amid supply-chain constraints due to the recent India-China border conflict and lingering effects of a lockdown.
Factory-gate shipments of passenger cars, two-wheelers and commercial vehicles fell in the range of 6%-79% year-on-year in June, data compiled from the reports of three brokerages—Nomura, Emkay Global and Motilal Oswal—showed. There, however, was a significant uptick compared to the previous month on improving rural demand and preference for personal vehicles amid the pandemic.
That improving rural sentiment is likely to reflect in tractor sales, which likely normalised to pre-pandemic levels in June, analysts said. Rural India also led the recovery in car and two-wheeler sales, as urban demand remained muted.
Here’s a look the auto sales in June 2020 (company data):
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