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Indian auto sales back on track, figures show increase in demand

Indian auto sales back on track, figures show increase in demand
Indian auto sales back on track, figures show increase in demand

After recording near-zero sales in locked-down April, Indian automobile sales have demonstrated a gradual increase in demand in May. However, auto sales were just a fraction of what these companies recorded last year.

According to sources, numerous automakers in the nation have resumed their operations toward April-end. Several factors such as supply chain disruption, stringent safety measures, and drastic fall in demand have forced manufactures to operate at lesser capacity. Most of the carmakers are currently operating at 20 percent of their installed capacities. 

Automakers have been facing several problems in their supply chain operations due to the shortage of support staff and drivers. These companies have been complaining about truck fleet operators charging a premium of up to 40% for unloading, loading, and transporting raw materials as well as finished vehicles.

Sources cite that, the nation’s largest carmaker, Maruti Suzuki India Ltd, recorded sales of 18,539 cars in May as compared to 134,641 units in May last year. The company started production at two of its factories the previous month after getting relaxation in lockdown measures. The carmaker had resumed its Manesar and Gurugram establishments from 12 May and 18 May respectively.

The nation’s 2nd largest carmaker in India, Hyundai Motor India Ltd, recorded domestic wholesales of 6,883 units in May, compared to 42,502 vehicles in the last year. The company also exported 5,700 units last month, taking the overall May sales to 12,583 vehicles.

Besides, as per the company’s statement, Hyundai received around 15,000 orders in May and delivered 11,000 new vehicles to customers last month.

Automakers are introducing numerous financial options to prosper in this tough period. In a bid to increase sales, Mercedes-Benz India has reportedly introduced a customized financial offer called ‘Wishbox 2.0’ to instill confidence in consumers who are planning to buy a vehicle post-lockdown. Such initiatives by automakers are expected give boost to Indian automobile sector in the forthcoming time.

Source Credit - https://www.livemint.com/auto-news/auto-sales-data-for-may-shows-gradual-pickup-in-demand-11591035803627.html