Auto companies continue their bumpy ride

Auto sales continued to be affected by the economic conditions. The heavy outbreak of Coronavirus in China and around the world has resulted into various lockdowns and disruption in trades as well. Thus, the auto sales numbers for the month of 2020 look weak with hardly any signs of recovery.

Escorts Led Agri Machinery Segment (EAM) of Escorts Limited sold 8,601 tractors in February 2020, registering a growth of 18.8 per cent against 7,240 tractors sold in February 2019 but 11MFY20 sales fell by 4.7 per cent to 80,574 units as compared to 84,507 units during 11MFY19.

For Maruti Suzuki India, the total sales went down by 1.1 per cent on YoY basis to 1,47,110 units from 1,46,045 units. Domestic sales also dropped by 3.6 per cent to 1,36,849.

Mahindra & Mahindra also reported a drop in sales by 32 per cent YoY with 40,634 units sold. Subsequently, the domestic sales were down by 34 per cent YoY at 38,002 units, commercial vehicles sales were down by 33 per cent YoY.

Since the domestic sales of Ashok Leyland fell by 39 per cent to 10,612 units, its total sales declined by 37 per cent YoY as well.

Motorcycle manufacturer Hero MotoCorp announced 19 per cent drop in its sales for February 2020 with 4,98,242 units being sold. The domestic sales fell by 20 per cent to 4,80,196 units but exports rose by eight per cent YoY. Total sales for February 2020 of TVS Motor also fell by 17 per cent to 2,53,261 units whereas, exports went up by 25 per cent to 82,877 units.