The automobile sector remains a key beneficiary of recovery and low-interest rates. Most segments have seen tidy improvement in wholesales during the month.
Passenger Vehicle Segment
- Four-wheeler market leader Maruti Suzuki India dispatched more than 1.4 lakh passenger vehicles (PVs) to dealers in December 2020, a growth of 14.6% year-on-year. Company reported domestic sales growth of 19.5% with 150,288 units of sales last month; a hike from 125, 753 units of sales in December 2019. The domestic sales also include 3,808 units sent to other OEMs, which includes the Vitara Brezza sold as the Toyota Urban Cruiser and the Baleno sold as the Toyota Glanza.
- Hyundai Motor India Ltd. recorded the highest-ever domestic December sales at 47,400 units last month, a 24.89% growth year-on-year. Exports rose 58.84% at 19,350 units, making up a cumulative sales growth of 33.14%. The company also achieved the highest-ever single month production at 71,178 units in December 2020. Hyundai managed to increase market share for the 2nd year in a row, with total domestic sales of 4,23,642 units in 2020,
- Tata Motors Ltd. reported a 21% increase in domestic sales as higher car deliveries offset the impact of lower commercial vehicle demand. Total sales rose 21% year-on-year to 53,430 units. Car sales rose 84% to 23,545 units. PVs posted a growth of 89% — the highest-ever sales in the last 33 quarters.
- MG Motor India has announced its highest-ever retail sales figures of 2020 with 4,010 units; marking a 33% growth in yearly comparison. Total retail sales registered, 3430 units came from the Hector SUV, while the remaining were split between the Gloster and ZS EV offerings. The overall sales in 2020 grew by 77% compared to its sales in 2019. Company expect the momentum to continue as the MG brand enters more markets in 2021.
- Honda Cars India sold 8,638 units in December as against 8,412 units.
- M&M Overall passenger vehicle sales were up 3% at 16,182 units with a 3% growth in exports at 2,210 units.
2 Wheelers Segment
- TVS Motor Company reported a 17.5% increase in total sales to 2,72,084 units in December. The company, which primarily makes two-wheelers and three-wheelers, had sold 2,31,571 units in December. The total two-wheeler sales during the month stood at 2,58,239 units as against 2,15,619 in December 2019, up 20%.
- Eicher Motor Ltd. saw sales of Royal Enfield motorcycles rise 37% in December, led by an increase in deliveries of models with engine capacity up to 350 cc. Total sales stood at 68,995 units compared with 50,416 units in December last year. Exports rose 82% to 3,503 units.
- Hero MotoCorp saw domestic sales grow 5% to 4.27 lakh vehicles. The December volumes indicated the continuously improving consumer sentiment.
- Yamaha Motor India saw total sales rise 33% to 39,224 units.
Commercial Vehicles (CV) Segment
- Tata Motor’s total commercial vehicle sales declined 5% to 29,885 units mainly due to a drop in sale of passenger carriers and small commercial vehicles.
- M&M Farm Equipment segment, registered a 25% growth in sales in December 2020 at 22,417 units as compared to the 17,991 units sold last year. Domestic sales were up 23% at 21,173 units, while exports rose 60% at 1,244 units. The wholesale volumes continued to be strong fueled by restoration of channel inventory post the festive season, announcement of hike in tractor prices by major OEMs and anticipation of sustained demand on the back of higher Rabi acreage, GoI support in Kharif procurement and rural development schemes.
- Ashok Leyland Ltd. reported an overall sales growth of 14% year-on-year at 12,762 units in December 2020. Medium and heavy commercial vehicle sales declined 2% to 6,884 units from 7,025 units. Exports rose 14.5% to 905 units from 790 units.
- Escorts Ltd.’s agri machinery segment sold 7,733 tractors in December, the highest ever recorded in the month, the company said in a statement to the exchanges. The automaker registered a growth of 88% against the 4,114 tractors sold in the same month last year. Domestic tractor sales grew 90% year-on-year at 7,230, while exports were up 63.3% at 503 units.
- Volvo Eicher Commercial Vehicles witnessed a 3% fall in sales in December 2020 to 4,892 units from 5,042 units, the company said in a statement to the exchanges. Domestic sales declined 7.7% to 4,069 units from 4,410 units, while exports were up 23.6% to 618 units from 500 units.
- Maruti’s sales of the light commercial vehicle Super Carry more than tripled to 5,726 units, while exports rose 31.4% to 9,938 units.
Inventory is lower than normal for passenger vehicles and tractors, leaving headroom for higher inventory filling in the coming months. Going forward all macroeconomic factors remain in favour of continued growth and we do not expect any significant supply-demand gaps.