witnessed a decline in wholesale despatches of automobiles compared to March
2021 due to the second wave of COVID-19. The strict restrictions imposed by
states have led top auto players to anticipate challenges in the areas of
dealership activity, supply chain and customer movement, even though the demand
for vehicles remains strong.
In terms of
passenger vehicles (PVs) sales, only Mahindra & Mahindra and Honda Cars
India posted a growth of 9.5% and 27.7% respectively, while Maruti Suzuki (7%),
Hyundai India (6.8%), Tata Motors (15.4%) and Toyota Kirloskar Motor (35.9%)
saw a decline. This drop is attributed to the general sentiment of the country,
which is gripped in fear due to the COVID-19 pandemic.
The sales of
commercial vehicles (CVs) are also seeing a dip with Tata Motors, Ashok Leyland
and VE Commercial Vehicles witnessing a decline in sales by 61%, 49.5% and 74.2%
respectively. Analysts predict that the bus segment will take a hit as the
pandemic related lockdowns will affect tourism, inter-state travel, reopening
of schools, industrial activity, etc.
When it came to two-wheeler
sales, Suzuki Motorcycle India grew by 6.1% whereas Hero MotoCorp and Royal
Enfield registered a month-on-month decline in sales.
A recent report
by Motilal Oswal observed that the recovery from the first wave of COVID was
easy due to the pent-up demand and savings. But the second wave will witness
back-ended recovery because of the slow economic activity in FY21 along with
lesser savings and cash inflow. Analysts expect the impact of the second wave
on the auto sector to be considerable.
Source: Express Drives
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