Automobile players across segments delivered decent volume performance in November 2020 with continuation of positive growth trajectory supported by retail sales during the just winded up festival season.
Passenger Vehicle Segment
Demand for passenger cars continued to improve on account of strong rural sentiment, improvement in finance availability, easing of supply chain bottlenecks and a gradual pickup in business and economic activities.
- Maruti Suzuki India dropped whereas its Korean arch-rival, Hyundai India, gained. They together dominate the Indian car market. Tata Motors, Kia Motors, Mahindra & Mahindra and Honda also gained and on the other hand prominent brands like Ford and Nissan were net losers. Domestic sales in November were in the range of 2.86 lakh units which is lower than the October sales of 3.34 lakh units.
- HMIL posted the highest ever November sales at 48,800 units in 2020 driven by festive demand. Hyundai Motor India facilitated a sales growth of 9.4 % in November 2020 over the same period last year. Newly-launched i20 contributed positively to the sustained growth of the Indian automotive industry and economy.
- Maruti Suzuki’s total domestic sale of 1,35,775 units was a drop of 2% over last year, but a more significant margin fall from 1,63,656 units sold in October. It gained on the export front from the 30% surge to 9,003 units last month.
- Tata Motors posted growth of 108% to 21,641 units sold last month from 10,400 vehicles sold in 2019. The surge in passenger car sales helped the company to compensate the overall decline in its portfolio to mere 4% for November where 47,859 were sold by the company.
- Kia Motors that also is proving to be a strong contender for the top three position in the PV segment, maintained its strong sales momentum for November by registering total sales of 21,022 units with its Sonet dominating the compact SUV market. Its Sonet sales of 11,417 units, helped post a robust growth of 50% over the same period last year.
- Mahindra & Mahindra witnessed 24% growth in overall passenger vehicle sales at 18,212 units in November backed by its newly launched Thar SUV in utility vehicle segment.
- Honda Cars India registered a growth of 55%. Domestic sales of 9,990 units in November’20 as against 6,459 units in corresponding month last year.
2 Wheelers Segment
- Hero MotoCorp Ltd, the world’s largest two-wheeler manufacturer, sold 5,91,091 units of motorcycles and scooters in November 2020, a 14% jump over last year. Company believes that the growth in personal mobility post Covid-19 restrictions will further strengthen the demand for two-wheelers.
- Honda’s domestic sales grew by a lower 11% to 4,12,641 units in November’20 compared to 373,283 units a year ago. Exports, however, were adversely affected due to unavailability of containers due to cyclone Nivar. As per Honda second quarter was about stabilizing the automotive ecosystem and third quarter is a bit about recovery.
- The Chennai-based TVS Motor performed better with a 21% higher sales of 322,709 units in November 2020 as against 266,582 units in the month of November 2019. Backed by higher demand for two-wheelers that grew 30% registering sales of 247,789 units in November 2020 as against 191,222 units sold in November 2019 in the domestic market.
- Bajaj Auto Ltd. reported a 5% year-on-year increase in total sales to 4.22 lakh units in November. Domestic sales stood at 1.98 lakh units as against 2.07 lakh units in November 2019, a decline of 4%. Total motorcycle sales rose 12% to 3,84,993 units.
- For Royal Enfield November remained a flat month with 59,084 units sold last month from the 58,292 units sold in the previous year. Its cumulative sales jumped to 63,782 motorcycles in the month of November, against the sales of 60,411 motorcycles for the same month last year, higher 6% this year.
Commercial Vehicles (CV) Segment
The worst-hit segment, the makers of commercial vehicles saw a rise in shipments (YOY basis) due to an economic slowdown and revision in load carrying norms and then by the pandemic.
- Tata Motors Ltd. Commercial vehicle sales fell 9% to 27,982 units.
- Mahindra & Mahindra witnessed Overall Commercial Vehicle sales down 4.5% at 22,883 units.
- Ashok Leyland Ltd. reported 5% increase in total commercial vehicle. Total heavy and medium commercial vehicle sales fell 14% to 5,114 units whereas Light commercial vehicles sales jumped 32% to 5,545 units.
- Bajaj Auto’s Total commercial vehicle sales dropped 38% to 37,247 units from 59,777 units.
- Eicher sold 3,710 units in Nov’20 up by 3% YoY and down by 12% MoM. In domestic market, it sold 3,088 trucks and buses up by 5% YoY and exported 473 vehicles (down 6% YoY). Volvo truck volume grew by 4% YoY to 149 units.
The pandemic had stalled production and led to a washout in the initial months of the lockdown. Sales slowly picked up from July, mostly led by first-time buyers as people opted for personal mobility over public transport amid fears of contracting the infection. Demand is also seen sustaining post the festive season as there is a healthy number of bookings with dealers but as we enter December 2020, the industry remains on edge about the surprises in store for 2021.