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?

Archita Jajjoo answered.
1 year ago

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.