Wholesale despatches of automakers has picked up pace in July. Maruti Suzuki, Hyundai Motors, Tata Motors and Toyota Kirloskar all reported strong growth numbers not just relative to July, 2020 or June 2021 but even in comparison with July 2019, the new benchmark.
Comparisons with prior periods have not been meaningful over the last few months but this is now possible because business activity had started to resume in July last year after the national lockdown was lifted in mid-June. Also, this year’s July sales came after a similar scenario played out in April and May, when automakers were significantly impacted by the production halts and dealership closures amidst the brutal second wave of Covid-19.
In that context, Maruti Suzuki reverted to its traditionally high levels of wholesale volumes selling over 1.36 lakh units in July, which was up 36.5% y-o-y and an 8.16% increase versus June. In good times, Maruti sells 1.3-1.5 lakh units a month. The despatches were much higher compared to the 98,210 units sold by the company in July 2019 as well. However, the company stopped short of calling it a recovery, saying the July 2021 numbers remained below the previous high registered in July 2018.
Hyundai Motor India witnessed a 26% y-o-y increase in domestic sales at 48,042 units. On a m-o-m basis, the company saw a rise of 18.6% in auto sales in July much better than the 39,010 units that it sold in July 2019.
Tata Motors reported a sharp 92% y-o-y jump in wholesale despatches with 51,981 units sold and this was up 19% versus June 2020 sales. The numbers were 58% higher compared to July 2019 as well. While the passenger vehicle sales surged 25% m-o-m to 30,185 units, the sales doubled over July 2020. Commercial vehicle sales were up a sharp 88% on a y-o-y basis to 23,848 units, while the rise was tepid versus June at 8%.
Toyota Kirloskar Motors (TKM) recorded an increase of 143% on a y-o-y basis to 13,105 units in the month of July, while a 49% increase on a m-o-m basis. V Wiseline Sigamani, AGM(sales and strategic marketing, TKM said the surge in demand is not on account of pent up demand alone and signals positive momentum. “July has been a good month for us as we saw a significant surge in both demand as well as wholesales numbers for second month in a row. Our retail sales have also been promising bringing down the gap between wholesales and retail figures,” he said.
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