Global auto sales forecast to fall by 20% this year: S&P Singapore
Global auto sales forecast to fall by 20% this year: S&P Singapore
Mike

Pent-up demand, along with attractive year-end discounts accelerated the year-on-year sales of major automobile players' during December.

Besides, analysts cited factors such as low interest rates, preference for personal mobility over public transport due to the pandemic as other key reasons for the upswing.

Amongst the major players, Maruti Suzuki reported a growth of 20.2 per cent in its overall sales during December 2020 on a year-on-year basis.

The company sold 1,60,226 units of vehicles last month, against 1,33,296 units sold in December 2019.

On a sequential basis, the company sold 1,53,223 units of vehicles in November 2020.

The other major passenger vehicle giant Hyundai Motor India' overall sales including exports grew by 33.14 per cent during December.

Its overall sales grew to 66,750 units from 50,135 units sold during December 2019.

Similarly, the company's domestic sales rose during the month under review. It edged higher by 24.89 per cent to 47,400 units from 37,953 units sold during the corresponding month of the previous year.

Exports increased by 58.84 per cent to 19,350 units from 12,182 units shipped out during December 2019.

However, Mahindra and Mahindra reported 10 per cent fall in its overall auto sales in December 2020 at 35,187 units.

During the same period of 2019, the company had sold 39,230 units.

In the utility vehicles segment, Mahindra sold 16,050 vehicles in December 2020, as compared to 15,225 vehicles in December 2019, registering a growth of 5 per cent.

The passenger vehicles segment sold 16,182 vehicles in December 2020, a growth of 3 per cent over the same period in the last year.

"Our overall sales have been affected due to the continuing supply chain challenges related to the constantly changing global environment, more specifically the supply shortage of micro-processors (semiconductors) used in Electronic Control Unit (ECUs)," said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.

"Demand continues to remain strong even after the festive season and as we get into the new year."

On the other hand, Toyota Kirloskar Motor sold a total of 7,487 units in the domestic market during December 2020, thereby clocking a growth of 14 per cent when compared to its wholesales in the month of December 2019.

The company had sold a total of 6,544 units in the domestic market in December 2019.

Premium car manufacturer Honda Cars India (HCIL) registered a monthly domestic sales of 8,638 units in December 2020 as against 8,412 units in corresponding month in 2019.

"Quicker market recovery aided by increased demand for personal mobility and our steady positive sales momentum is very encouraging," said Rajesh Goel, Sr. Vice President and Director, Marketing & Sales, Honda Cars India.

"With availability of coronavirus vaccines in 2021, we expect a return of optimism to the market and boosting the consumer sentiment going forward."

In terms of the two-wheeler segment, Hero MotoCorp reported a rise of 5.29 per cent in its overall sales for December 2020.

The company sold 447,335 units of motorcycles and scooters last month from an off-take of 424,845 units during the corresponding month of the previous year.

Additionally, Hero MotoCorp clocked "its best ever third quarter" with 18.45 lakh units sold during the October-December period.

"This is a 19.7 per cent growth over the corresponding quarter in the previous fiscal (FY'20) when the company had sold 15.41 lakh units," the two-wheeler manufacturer said in a statement.

"The December volumes indicate the continuously improving consumer sentiment and the company expects the positive trend to continue in the new year, despite challenges posed by the Covid-19 pandemic."

Furthermore, Yamaha Motor India group of companies announced that the total domestic sales have increased by 33 per cent to 39,224 units in December compared to 29,486 units sold in the corresponding month of 2019.

The company expects overall demand to grow in 2021 owing to a varied demand of personal mobility.

In addition, Royal Enfield posted a rise of 37 per cent in Decembers sales which increased to 68,995 motorcycles from 50,416 sold during the like month of 2019.

According to Sridhar V, Partner, Grant Thornton Bharat LLP: "The big two PV players have shown excellent growth in the back of the demand for hatchback and SUV sustaining due to pent up demand as well as the year end discounts and imminent price rise announced by most of the OEM from Jan 1."

"New introductions have also helped to some extent. Exports have also contributed to the wholesale numbers."

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