Auto Sales In December 2020: Eicher Sales Rise 37%, Tata Motors’ Passenger Vehicle Sales Nearly Double

Automobile sales in December 2020 are likely to witness healthy growth from the low base due to BS-IV inventory de-stocking last year.

We expect wholesales to witness healthy YoY growth for most segments, barring medium and heavy commercial vehicles and three-wheelers, on a soft base, low/stable inventory levels, rise in preference for personal mobility and continued retail momentum, Nirmal Bang said in a report.

Inventory is lower than normal for passenger vehicles and tractors, leaving headroom for higher inventory filling in the coming months, according to Motilal Oswal Financial Services. The brokerage expects spillover demand from the festive season and inventory refilling to drive demand for passenger vehicles and tractors.

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 2019.

The total two-wheeler sales during the month stood at 2,58,239 units as against 2,15,619 in December 2019, up 20%.

The domestic two-wheeler sales stood at 1,76,912 units last month, as compared to 1,57,244 units in December, up 13%, it added.

The total exports increased by 28% to 94,269 units last month, as against 73,512 in the year-ago period.

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.
• Total commercial vehicle sales declined 5% to 29,885 units mainly due to a drop in sale of passenger carriers and small commercial vehicles.
• Car sales rose 84% to 23,545 units.

“Retail sales were 18% higher than wholesale for the month and pipeline inventory remains thin,” said Shailesh Chandra, President of Passenger Vehicles unit, in the media statement. “We are continuing to debottleneck the supply chain and ramp up our output to meet the increased demand while addressing the availability of electronic components.”

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
• Sales of models with engine capacity up to 350 cc rose 33% to 63,580 units.
• Sales of models with capacity over 350cc more than doubled to 5,415 units.

Hyundai Motor India Ltd. recorded the highest-ever domestic December sales at 47,400 units last month, a 24.89% growth year-on-year, the company said in a statement.

Exports rose 58.84% at 19,350 units, making up a cumulative sales growth of 33.14%

The car maker also achieved the highest-ever single month production at 71,178 units in December 2020.

With total domestic sales of 4,23,642 units in 2020, Hyundai managed to increase market share for the second year in a row, Hyundai Motor India Managing Director SS Kim said. “Looking towards the future, we are proceeding with cautious optimism and positively anticipate green shoots of recovery in 2021.”

Ashok Leyland Ltd. reported an overall sales growth of 14% year-on-year at 12,762 units in December 2020, according to the company’s exchange filings.

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.

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.

Mahindra & Mahindra Ltd.’s Automotive Division registered a 10.3% decline in sales in December 2020 at 35,187 units against the 39,230 units sold in the same period last year, according to the company’s exchange filing.

Overall passenger vehicle sales were up 3% at 16,182 units with a 3% growth in exports at 2,210 units.

“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 Units,” Veejay Nakra, Chief Executive Officer of Mahindra’s Automotive Division said.

The Farm Equipment segment, on the other hand, 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,” Hemant Sikka, President of Mahindra’s Farm Equipment Sector said.

Maruti Suzuki India Ltd. posted total sales of 160,226 units in December 2020 led by compact vehicles, LCVs and Vans. This is a growth of 20.2% over the 1,33,296 units sold in the same month last year, the country’s largest automaker said in a statement.

Domestic sales rose 19.5% at 1,50,288 units and exports were up 31.4% at 9,938 units.

“The Company remains committed to the health, safety and well-being of all members across the value chain. All manufacturing, sales and service operations continue to take place fully consistent with all safety requirements for employees and customers,” the statement said.

Maruti Suzuki registered a growth of 13.4% in the third quarter of the current financial year with total sales of 4,95,897 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.

"Going forward all macroeconomic factors remain in favour of continued growth and we do not expect any significant supply-demand gaps,” the company said. “Rising Inflation, however, continues to be a worry.”