InvestorQ : How were the auto numbers for the month of December 2020? Is a revival visible in auto sales finally?
Rashi Mehra made post

How were the auto numbers for the month of December 2020? Is a revival visible in auto sales finally?

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Archita Jajjoo answered.
4 months ago
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The lag effect of the festive season appeared to continue into the month of December also, Here are the highlights of the auto numbers for the month of December 2020.

· Maruti Suzuki reported 17.8% growth in at 146,480 units. The sustained demand recovery came from entry-level cars, hatchbacks and utility vehicles.

· Maruti Suzuki also replenished the inventory at dealerships after higher sales during the Diwali season. This is likely to hold robust sales in the coming months also.

· Hyundai Motors recorded record domestic December sales at 47,400 units. This is nearly 25% higher than the year-ago period.

· It was not just domestic sales, but even exports at Hyundai rose 58.84% at 19,350 units resulting in cumulative sales growth of 33.14% for the month of Dec-20

· For the full year 2020, Hyundai achieved domestic sales of 423,642 units and also ended up increasing its market share for the second year in succession.

· Tata Motors also joined the party and reported 21% increase in total vehicle sales in the domestic market at a total of 53,430 units for the month.

· Mahindra & Mahindra was a surprise and reported 10.3% fall in total sales at 35,187 units in December. Passenger vehicle sales were up but other items were lower.

· M&M top management acknowledged that their sales had been affected due to supply-chain challenges, like the shortage of micro-processors used in electronic control units.

· Overall, the two-wheeler, passenger vehicle and tractor dispatches are expected to improve between 8% and 34% in the coming months on a YOY basis.

· Among other players, Eicher Motors saw Royal Enfield motorcycle sales up 37% by an increase in sales of models with engine capacity up to 350 cc.

· Eicher reported total sales of 68,995 units even as exports rose 82% on a YOY basis. The company has seen a sharp growth after a long time.

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