April Auto Sales: Lockdown Leads To Little Or No Sales For Automakers
Auto sales come to a grinding halt as lockdown prompts dealership and factories to remain shut.
Eicher's Royal Enfield Sells 91 Vehicles In April
Eicher Motors Ltd. sold 91 units of Royal Enfield motorcycles in April as the nationwide lockdown meant dealerships remained closed.
“For the month of April, Royal Enfield’s manufacturing facilities across Tiruvottiyur, Oragadam and Vallam Vadagal in Chennai, and the entire supply chain including the company’s dealerships across India, remained closed, in compliance with the Government directives,” it said in a media statement.
Escorts Sales Fall 87% In April
Escorts Ltd. saw sales fall 87 percent to 705 units in April. Exports declined 67 percent to 92 units.
Sales were impacted by the nationwide lockdown that led to the closure of dealerships in most areas, Escorts said. Most of the sales were recorded in the last few days after the government exempted sale of agri machinery from April 20.
Escorts said that it expects the tractor industry to recover faster than some other sectors as rural sentiment is positive due to the expectation of a good Rabi crop output.
Mahindra’s Farm Equipment Division Relatively Resilient
Mahindra & Mahindra Ltd.’s Farm Equipment Sector sold 4,716 units in the domestic market in April 2020, as against 27,495 units in the same period last year, the company said in a statement. Total tractor sales including exports stood at at 4,772 units, as against 28,552 units last year.
“The extension of the national lockdown impacted the business, with dealers partially open for just a few days," Hemant Sikka, President of Mahindra's farm equipment sector said. "The rate of improvement will depend on how quickly the on-ground sales operations, including the start of NBFCs are normalised, following the relaxation of the lockdown."
Mahindra & Mahindra's Automotive Division Too Exported Some Vehicles
Mahindra & Mahindra Ltd. sold 733 vehicles in the export market during April 2020, the company said in an exchange filing.
Domestic sales of vehicles during the month was completely impacted by the ongoing Covid-19 pandemic and the resulting national lockdown.
"At Mahindra, we are working hand in hand with all stakeholders, especially our dealer and supplier partners, to get our ecosystem started, once the lockdown is lifted," Veejay Nakra, chief executive officer of the company's automotive division said. "The safety of all our employees will be of paramount importance to us while resuming our operations."
Maruti Suzuki Managed To Export Some Vehicles In April
The nationwide lockdown meant that the country’s largest carmaker registered no sales last month. Maruti Suzuki however managed to export 632 vehicles from the Mundra Port which has resumed operations.
All operations were closed in April keeping with the government’s guidelines, according to a company statement.