Owing to various state government-sponsored lockdowns and the second wave of COVID-19 pandemic, India's automobile companies clocked dismal sales in May month.
Here's how some key players fared in May.
The company presented an impressive triple-digit growth as the total sales rose to 114 percent at 2.72 lakh units in May compared to the same month last year. The total exports spiked 142 percent as 2.11 lakh units were shipped this year.
The management said it is anticipating a bounce-back post-second wave. The inventory situation is concerning.
Escorts Agri Machinery Segment (EAM) reported a decline of 2.6 percent as it sold 6,423 tractors in May 2021 against 6,594 tractors sold in May 2020. The sales fell both in terms of month-on-month (MoM) and year-on-year (YoY).
The management said, "The ground situation has eased in the last few days and we expect normalcy soon. Macroeconomic factors are positive led by a good monsoon, high crop production, and better government support."
While the sale had increased year-on-year, the company has reported a decline month-on-month. The numbers went down 70 percent as only 46,555 units were sold in May against 1.59 lakh units in April.
On year-on-year, 46,555 units were sold in May 2021 vis-a-vis 18,539 units in May last year.
The company said the numbers are not comparable as neither of the two months had normal production. "Sales in the month of May are below estimate as the company had shut production from May 1-16 to divert oxygen for medical purposes," it said. In the same month last year, production was disrupted owing to lockdown.
The company reported a sale of 3,199 units in May 2021 against 1,420 units in May 2020. The company said the plants are still not fully operational due to lockdown. They will be operational only for 5-10 days in June.
The total auto sales increased to 82.5 percent as 17,447 units were sold in May 2021 as compared to 9,560 units in May 2020. The tractor sale was down 1 percent as 24,184 units were sold this year as against 24,341 units in the same period last year.
The company said it's seeing a sharp improvement in farmer sentiment. "Green shoots of recovery in tractor sales are visible," it added.
The commercial vehicle sale increased by 78.3 percent year-on-year from 686 units in May 2020 to 1,223 units in May 2021.
The company sold 249 units in May 2021 against 16 units in the same month last year.
(Edited by : Jomy Jos Pullokaran)
First Published: IST