Upcoming BS-VI Transition, Production Cuts Behind Decling Feb Auto Sales: Report

The run-up to BS-VI transition together with the final financial slowdown and truncated manufacturing led to the decline in gross sales of vehicle majors in February, market watchers stated. “Significant dip in sales volumes across segments is primarily due to a run-up to BSVI transition both on account of deferment by the buyers and less production in order to relinquish stock from the OEM side,” stated Sridhar V, Partner, Grant Thornton India LLP. “Also, the coronavirus impact has affected the supply chain, resulting in a cut down in production,” Sridhar added.

According to Suman Chowdhury, President (scores) at Acuite Ratings and Research: “With sales decline of nearly 30 per cent for both PV and CV segments, demand outlook for OEMs continues to be negative. What is interesting is the green shoot in rural demand as reflected through a smaller decline in two-wheeler sales and a healthy pickup in tractor sales driven by a good rabi crop expectation. Nevertheless, Acuite believes that the overall auto sales will continue to be weak and wider improvements across the economy are at least one to two quarters away.”

Automobile main Maruti Suzuki India reported a 1.1 per cent year-on-year (YoY) fall in its whole gross sales in February at 1,47,110 models. During the identical interval final 12 months, the corporate had bought 1,48,682 models. Its home gross sales final month declined by 3.6 per cent to 1,34,150 models, the corporate stated in a regulatory submitting. Exports through the interval below overview, however, rose by 7.1 per cent to 10,261 models.

“Maruti Suzuki India Limited sold a total of 1,47,110 units in February 2020. This includes 1,34,150 units in the domestic market, 2,699 units of domestic OEM (original equipment manufacturer) sales and 10,261 units of exports,” the corporate stated in its submitting on Sunday. Another vehicle main, Tata Motors reported a 34 per cent year-on-year (YoY) decline in its February home gross sales at 38,002 models. It had bought 57,221 models in February final 12 months.

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Commercial automobile gross sales in India plunged 35 per cent to 25,572 models through the month below overview, from 39,111 models bought through the corresponding interval final 12 months, Tata Motors stated in a regulatory submitting. It exported 2,514 industrial autos final month, 9 per cent decrease on a year-on-year foundation. The firm’s whole industrial automobile gross sales in February 2020 had been recorded at 28,086 models, a fall of 33 per cent from 41,882 bought a 12 months in the past.

“We are on track for the BS-VI migration, with BS-IV stocks being consumed as per plan and BS-VI production initiated,” Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors stated in an announcement on Sunday. Wagh additional famous that the availability disruptions from the novel coronavirus outbreak in China might have some influence on the BS-VI transition and efforts are underway to mitigate the influence.

On its half, Mahindra and Mahindra reported a 42 per cent fall in its whole automobile gross sales in February at 32,476 models. The firm had bought 56,005 models in February 2019. Its home gross sales final month stood at 30,637 models, 42 per cent decrease than 52,915 autos bought in February 2019, the corporate stated on Sunday. Two- and three-wheeler maker TVS Motor Company on Monday stated it bought 253,261 models final month, down from 299,353 models bought in February 2019.

According to TVS Motor, it’s on observe to lowering supplier stage BS-IV inventory within the home market and is assured of retailing it this month. In addition, the outbreak of pandemic Coronavirus (COVID-19) has led to an influence on the availability of sure elements for the manufacturing of BS-VI autos. All efforts are on to normalise this on the earliest, the corporate stated in an announcement.

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This post was last modified on March 4, 2020 8:34 pm

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