The automobile sector is seeing a big bounce back in July with wholesales down by just one percent.
The first quarter of the financial year 2020-21 slipped the sector off track with a historic zero sales in the month of April and partial resumption of operations in May. The coronavirus pandemic coupled with the already undergoing 18-month slowdown in the industry severely affected the sector.
However, the month of June proved to be quite cheerful for two-wheeler and tractor segment. While passenger vehicle sales are slowly picking up, commercial vehicles are a hard play.
The sales recorded in July had somewhat accelerated the speed of recovery in the industry. Maruti with near 100k sales leads the way. The company reportedly recorded 43% up over last July.
The overall industry has shown signs of a comeback in this pandemic – the Wholesale Volumes of the Industry in July 2020 reported similar volumes to that of July 2019. The Industry recorded dispatches of 1,97,610 units in July 2020 as against 1,99,354 units shipped during corresponding period of previous year.
Maruti Suzuki grew 1.3% YoY (year-on-year) and recorded a Market Share of 49.5%. It saw a Market Share jump of 1.1% over July 2019. Hyundai however registered a decline of -2.1% in July’20 as against July’19. Due to the decline; it lost Market Share of -0.2%.
Tata Motors was able to register one of the highest YoY growth in July 2020 and its volumes jumped 43.2% in July’20 over July’19. This also enabled Tata to increase its Market Share by a mammoth 2.3% in July’20 v/s July’19.
