Auto Sales In August 2020: Hero, Maruti, Mahindra Make The Most Of Rural Demand

Auto sales rose for the third straight month in August 2020, with segment leaders Maruti Suzuki India Ltd., Hero MotoCorp Ltd. and Mahindra Tractors setting the benchmarks for the wider industry.

Sales of Maruti Suzuki rose 17.1% year-on-year and 15.3% sequentially to 124,624 units last month. That includes 115,325 domestic shipments and 1,379 units sold to other original equipment manufacturers. Exports, however, fell 15.3% year-on-year.

Domestic sales of Hero MotoCorp rose 7.55% year-on-year to 584,456 units. That compares with the 543,406 units that India's largest two-wheeler maker sold in the year-ago period and 514,509 in the previous month.

Mahindra Tractors recorded its best-ever August sales, as shipments rose 69% over the year ago to 25,503 units. The company had sold 13,871 units in August 2019 and 25,402 units in July 2020. 955 tractors were exported.

Rural India continued to drive demand, and tractors led the revival, according to ICICI Direct. Most two- and four-wheeler makers witnessed an uptick but commercial vehicles and three-wheelers continued to lag. An early onset of the festive season (Onam, Ganesh Chaturthi) was also seen as aiding sales.

According to ICICI Securities, auto wholesales, or factory-gate shipments, will start tracking retail trends after October. Footfalls at dealerships will also determine how many vehicles are produced in a month. Financing too will be keenly watched, as the RBI’s loan repayment moratorium is now lifted.

Here's a look at the auto sales in August 2020, as reported by the companies, in annual as well as sequential basis.

Tractor maker Escorts Ltd. has recorded its best-ever August sales, in an indication that rural demand is holding up even as India heads into recession.

Total tractor sales rose 80.1% year-on-year to 7,268 units last month, as against 4,035 units sold a year ago, the Faridabad, Haryana-based company said in an exchange filing on Tuesday.

• Domestic tractor sales rose 79.4% year-on-year to 6,750 units.
• Tractor exports rose 90.4% year-on-year to 518 units.

“We remain optimistic for the upcoming festive months. The supply side situation improved significantly as compared to last month,” Escorts said in the statement. “In August 2020, we could build some inventory both at dealer and depots, which since last few months was at very low levels.”

“We are currently operating close to peak capacity now,” the company said.

Sales of Maruti Suzuki India Ltd. stood at 124,624 units in August 2020—indicating a year-on-year growth of 17.1% and sequential growth of 15.3%.

The total sales includes 115,325 domestic shipments and 1,379 units sold to other original equipment manufacturers, India’s largest carmaker said in an exchange filing on Tuesday. Exports, however, fell 15.3% year-on-year.

• Sales of mini cars (Alto, S-Presso) rose 94.7% year-on-year to 19,709 units.
• Sales of compact cars (WagonR, Swfit, Celerio, Ignis, Baleno, Tour S, DZire) rose 14.2% year-on-year to 61,956 units.
• Sales of utility vehicles (Gypsy, Ertiga, S-Cross, Vitara Brezza, XL6) rose 13.5% year-on-year to 21,030 units.
• Sales of vans (Omni, Eeco) rose 5.3% year-on-year to 9,115 units.
• Sales of LCVs (Super Carry) rose 47.4% year-on-year to 2,292 units.

The only segment that witnessed a decline was the mid-sized cars. Maruti Suzuki sold only 1,223 units of the Ciaz sedan in August 2020, compared with 1,596 units a year-ago.

“The company remains committed to the health, safety and well-being of all members across the value chain,” Maruti Suzuki said in the statement. “All production and sales continue to take place fully consistent with all safety requirements for employees and customers.”

Retail sales of MG Motor India Pvt. Ltd. rose 41.2% year-on-year to 2,851 units in August 2020. The company had sold 2,018 units in the same month last year.

The company had sold sold 2,105 units in July 2020.

The recently launched MG Hector Plus is seeing traction from the family segment as people begin to travel amid easing lockdown restrictions, the carmaker owned by China’s SAIC Motor Corp. Ltd. said in a statement on Tuesday.

There was also good traction in the electric vehicle segment, where MG Motor has just one product—the MG ZS EV. And, with the support of the Delhi government, the company hopes that the EV category would see a further increase in momentum.

"We've ramped up the overall production in August compared to July. We are working on fulfilling existing backorders for the Hector and prioritising vehicle deliveries for the ongoing festive season,” Rakesh Sidana, director (sales) at MG Motor India, said in the statement. “The recovery in upcountry markets has been faster which should augur well during the festive season.”

The company, meanwhile, is also getting ready for the launch of its new SUV, the MG Gloster, by Diwali this year.

Sales of SML Isuzu Ltd. declined 53% year-on-year to 320 units in August 2020. The company had sold 677 units in August 2019 and 307 vehicles in July 2020. In the first quarter of the ongoing fiscal, Isuzu sold 202 vehicles—indicating a 95% decline from the 4,282 units it sold in the year-ago period.

Mahindra and Mahindra Ltd. sold 30,426 passenger and commercial vehicles in August 2020, indicating an annual decline of 16%. The company's automotive division had sold 36,085 units in August 2019 and 25,678 units in July 2020.

• Passenger vehicle sales rose 1% year-on-year to 13,651 units.
• Commercial vehicle sales rose 4% year-on-year to 15,299 units.
• Three-wheeler sales fell 94% year-on-year to 307 units.
• Total domestic sales fell 13% year-on-year to 29,257 units.
• Total exports fell 54% year-on-year to 1,169 units.

"For the month of August, we've registered growth in both SUVs and pick-ups,” Veejay Nakra, chief executive officer of M&M's automotive division, said in an exchange filing on Tuesday. We have been able to meet the uplift in demand by managing the supply chain challenges and going forward will continue to keep our focus on it.”

Mahindra and Mahindra Ltd. sold 23,503 tractors in August 2020, indicating an annual growth of 69%. The company had sold 13,871 units in August 2019 and 25,402 units in July 2020. The company exported 955 tractors in the month gone by.

"On the back of highest ever sales in July, we have clocked yet another highest ever sales in August," Hemant Sikka, president-farm equipment sector at M&M, said in an exchange filing on Tuesday. “We expect rural sentiments to remain positive and translate into robust tractor demand as we move into the festive period."

Total sales of Ashok Leyland Ltd. fell 31% year-on-year to 6,325 units in August 2020. The company had sold 9,250 commercial vehicles in the year-ago period and 4,775 units in July 2020.

• Truck sales fell 36% year-on-year to 2,276 units.
• Bus sales fell 83% year-on-year to 313 units.
• Light CV sales fell 4% year-on-year to 3,736 units.

The company exported 501 commercial vehicles last month.

Sales of Royal Enfield motorcycles fell 5% year-on-year to 50,144 units in August 2020, parent Eicher Motors Ltd. said in an exchange filing on Tuesday. The maker of the best-selling Classic 350 had sold 52,904 units a year ago and 40,334 units in July 2020.

• Sales of upto 350 cc motorcyles rose 4% year-on-year to 46,357 units.
• Sales of 350 cc+ motorcycles fell 54% year-on-year to 3,787 units.

At 2,573 units last month, the company exported 38% fewer motorycles compared to a year ago.

Total sales of Hyundai Motor India Pvt. Ltd. fell 6.06% year-on-year to 52,609 units in August 2020. The company had sold 56,005 units in the same month last year and 41,300 units in July 2020.

Domestic sales, however, were up 19.9% to 45, 809 units as against 38,205 units in August 2019, the company said in a statement on Tuesday. Exports fell 61.79% year-on-year to 6,800 units.

The sales growth came off a comparatively low base last year, Tarun Garg, Hyundai India’s director for sales, marketing and service, said in the statement. “We would like to carry on with cautious optimism as uncertainty still surrounds the pandemic,” he said.

Total sales of VE Commercial Vehicles Ltd. fell 30% year-on-year to 2,477 units in August 2020, parent Eicher Motors Ltd. said in an exchange filing on Tuesday.

The company had sold 3,538 units in the year-ago period.

• Domestic sales of fell 30.3% year-on-year to 2,190 units.
• Eicher Motors' exports fell 21.4% year-on-year to 250 units.

Only 37 Volvo trucks were sold last month, compared to 76 in the year-ago period.

Sales of Toyota Kirloskar Motor Pvt. Ltd. fell 48.08% year-on-year to 5,555 vehicles in August 2020. The company had sold 10,701 units a year ago and 5,386 units in July 2020.

"We began August with a lot of apprehensions due to the skewed rise in covid positive cases in Karnataka and throughout the country. It had a resultant impact on both the demand and supply scenarios," Naveen Soni, vice president-sales and service at Toyota Kirloskar said in a statement.

But the carmaker witnessed an increase in for most models in the past month.

"However, supplying vehicles from our end (to dealers) posed as a challenge due to the rising number of Covid-19 cases in Bangalore and its surrounding areas, where most of our workforces reside,” Soni said. “This even led us to ramp down production to single shift...to ensure that we are taking all measures to safeguard the health and safety of our employees.”

Also Read: Toyota To Launch Its Version Of Maruti Suzuki Vitara Brezza In 2020

More than half the infected workers have recovered completely and are reporting back to work, he said. "This has helped us immensely in inching up supplies so as to be able to cater to the increasing demand of our customers.

Domestic sales of Hero MotoCorp Ltd. rose 7.55% year-on-year to 584,456 units in August 2020. That compares with the 543,406 units that India's largest two-wheeler maker sold in the year-ago period and 514,509 in the previous month.

• Motorcycle sales rose 9.24% year-on-year to 544,656 units.
• Scooter sales fell 11.28% year-on-year to 39,798 units.
• Exports fell 18.66% year-on-year to 15,782 units.

A bulk of the two-wheeler demand came from semi-urban and rural areas of the country, Hero MotoCorp said in an exchange filing on Tuesday.

The company is also witnessing "strong retail offtake". Its latest product—the Xtreme 160R—has "received very positive feedback" and increased the company’s market share in the premium segment.

Still, the Pawan Munjal-led firm is cautious. It expects the upward sales trajectory to hold its line in the coming months due to several favourable factors—the upcoming festive season, increasing consumer confidence and continued policy support.

Sales of Kia Motors India rose 74% year-on-year to 10,845 units in August 2020, the South Korean carmaker said in a statement on Tuesday. The company had sold 6,236 units in August 2019—the first month of its operations in the country.

Now, just a year later, the sister brand of Hyundai Motor Co. Ltd. claims to be among the Top 5 carmakers in India with a market share of nearly 6%.

Kia Motors, at present, sells only two models in India—the Kia Seltos SUV and the Carnival MPV. Of the 10,845 units that the company sold in August 2020, 10,655 were Seltos—making it among the best-selling sports utility vehicles in the country.

It now remains to be seen how the carmaker's latest offering, the Kia Sonet, performs. That the Compact SUV garnered over 6,500 bookings on the first day augurs well for its ride ahead.

Total sales of TVS Motor Co. Ltd. fell 1% year-on-year to 287,398 units in August 2020. The Chennai-based two- and three-wheeler maker had sold 290,455 units a year ago and 252,744 in the previous month.

• Total two-wheeler sales inched up to 277,226 units from 275,851 units a year ago.
• Domestic two-wheeler sales fell 1% year-on-year to 218,338 units.
• Motorcycle sales were at 1,19,878 units, scooter sales stood at 87,044 units.
• Three-wheeler sales stood at 10,172 units as against 14,604 units a year ago.

TVS Motor said its total exports were at 68,347 units in August 2020 as against 69,702 units in the corresponding period a year ago.

Total sales of Bajaj Auto Ltd. fell 9% year-on-year to 3,56,199 units in August 2020. The Chakan, Pune-based two-wheeler maker had sold 390,026 units in the year-ago period and 255,832 units in July 2020.

• Domestic two-wheeler sales rose 3% year-on-year to 178,220 units.
• Two-wheeler exports fell 6% year-on-year to 142,838 units.
• Domestic three-wheeler sales fell 78% year-on-year to 7,659 units.
• Three-wheeler exports declined 7% year-on-year to 27,482 units.

While Bajaj's India sales declined 11% year-on-year to 185,879 units, it exported 6% fewer vehicles (170,320 units) compared to a year ago.