Auto Sales In October 2020: Bajaj Auto Reports Highest Sales On Record; TVS Sale Up 22%

Auto sales continued to improve in October 2020 as vehicle manufacturers ramped up production anticipate strong sales during the ongoing festive season.

Analysts expect wholesales to grow year-on-year for all segments barring commercial vehicles aided by inventory restocking to meet festive demand. Demand for passenger cars and two-wheelers is likely to remain skewed towards semi-urban and rural markets.

Here’s a look at the auto sales in October 2020, as reported by the companies, in year-on-year terms:

Maruti Suzuki Ltd. sold over 1.82 lakh vehicles during October, a growth of 19% over the same month last year.

India’s largest carmaker saw domestic car sales rise 17.9% to 1.24 lakh units. Exports were up 4.7% to 9,586 units, according to its stock exchange filing.

Sales in the automaker's compact segment--that includes WagonR, Swift, Celerio, Ignis, Baleno and Dzire--rose 26.6% to 95,067 units. The compact segment was the driver of Maruti's sales in October.

Utility vehicle sales for the likes of Ertiga and Brezza rose 9.9% to 25,396 units.

Light commercial vehicle sales increased 30.5%, while sales of vans rose 32.9%.

MG Motor India saw its monthly sales rise 6% in October to 3,750 units.

The relatively new entrant to the Indian market sold a record 3,625 units of its flagship MG Hector SUV during the month. It’s electric vehicle MG SZ SUV sold 125 units during the month.

The company’s latest offering MG Gloster has seen over 2,000 bookings, it said in a statement. “We expect continued traction because of Diwali in November and are ramping up supplies to cater to the increasing demand,” said Rakesh Sidana, Sales Director at MG Motor India.

Hyundai Motor India Ltd. recorded its highest ever domestic monthly sales of 56,605 units in October, according to a statement.

"The October month sales performance has set a positive tone for overall business environment and we are confident that Hyundai will continue to strongly contribute towards sustainable growth of economy, community and all its stake holders," Sales and Marketing Director Tarun Garg said in a media statement.

• Domestic sales rose 13.2% to 56,605 units.
• Exports fell 10.1% to 12,230 units.
• Total sales rose 8.2% to 68,835 units.

Tractor maker Escorts Ltd. reported a 2.3% growth in monthly sales to 13,664 units. The company said, in a media statement, this is its highest-ever October sales.

“Despite operating at near-full capacity, the demand outpaced supply resulting in lower-than-normal inventories,” the statement said. “We expect demand momentum ot continue and supply chain issues smoothened out in the next few months. Inflation in commodity prices remains a worry.”

Demand was driven by higher crop production, good crop prices, sufficient availability of water and easy financing, it said.

• Domestic sales rose 1.1% to 13,180 units.
• Exports rose 51.7% to 484 units.

Mahindra & Mahindra Ltd. saw sales fall 14.5% in October to 44,359 units even as the automaker said it is seeing better demand during the festive season.

Domestic passenger vehicle sales rose 1% over last year to 18,622 units, according to its stock exchange filing. Sales of utility vehicles too rose 3% to 18,317 units.

“For Mahindra, the festive season has started on a positive note with deliveries and bookings being higher than last year,” said Chief Executive officer of Automotive Division Veejay Nakra in the media statement. “Going forward, this augurs well for a robust festive demand which in turn will help the industry in the short term.”

While car and SUV sales rose, M&M's commercial vehicle sales continued to struggle. Sales of CVs fell 23.5% to 23,716 units. Exports declined 25% to 2,021 units.

Tractor Division

Mahindra's farm equipment arm sold 46,558 units during October, a growth of 2% over last year.

• Domestic sales rose 2% to 45,588 units.
• Exports rose 23% to 970 units.

“We continue to witness unprecedented retail demand which is likely to be higher than wholesale numbers on back of expectations of a higher Kharif output and good cash flow in the market,” said Mahindra Farm Equipment Sector President Hemant Sikka. “Auspicious festival days ahead, coupled with mechanisation requirements for ongoing Kharif harvesting and impending Rabi sowing season augurs well for the industry.”

Eicher Motors Ltd., the maker of Royal Enfield motorcycles, saw sales decline 7% to 66,891 units.

Domestic sales were 7% lower than last year at 62,858 units, according to its monthly filing. Exports were down 9% at 4,033 units.

Models with engine capacity up to 350cc, the segment that drives Royal Enfields volume, saw sales fall 6% to 60,467 units. Sales of models over 350cc fell 17% to 6,424 units.

Hero MotoCorp Ltd. saw sales rise 35% in October as it sold a record 8.06 lakh vehicles in one month.

Motorcycle sales rose 32.5% over last year to 7.32 lakh units, according to its exchange filing. Scooter sales too rose to 74,350 units from 46,576 units earlier.

“With the higher dispatches during the month, the company’s customer touchpoints across the country now have adequate inventories in line with market demand in the ongoing period,” it said in the filing.

Hinduja flagship firm Ashok Leyland on Monday reported 1% increase in total commercial vehicle sales at 9,989 units in October. The company had sold 9,862 units in the same month last year, Ashok Leyland said in a regulatory filing.

• Domestic sales declined 2% to 8,885 units as against 9,079 units in October 2019.
• Total heavy and medium commercial vehicle sales were down 11% at 4,588 units as compared to 5,131 units in the year-ago month.
• Light commercial vehicles sales were, however, up by 14% at 5,401 units as compared to 4,731 units in October last year.

Two-wheeler maker Bajaj Auto Ltd.’s two-wheeler sales rose 18% in October to 470,290 units from a year ago. This is its highest ever sales recorded in a month, according to the company’s regulatory filing. “Pulsar brand recorded sales of over 170,000 units. Highest ever,” it added.

• Domestic sale of two wheelers rose 11% to 268,631 units, year-on-year. Exports rose 29% to 201,659 units.
• Domestic sale of commercial vehicles fell 65% to 12,529 units. Exports rose 4% to 29,219 units.
• Overall, the company's total sales rose 11% to 512,038 - highest on record.

TVS Motor Company sales grew by 22% year-on-year, registering 394,724 units in October 2020, according to the exchange filing.

• Total two-wheelers sales grew by 24% recording 382,121 units in October 2020.
• Domestic two-wheeler sales posted a growth of 19% registering 301,380 units.
• Motorcycle grew by 38% recording 173,263 units in October 2020.
• The Company's total exports grew by 33% registering 92,520 units in the month of October 2020.
• Three-wheeler of the Company registered sales of 12,603 units in October 2020.