Hyundai Motor India Limited (HMIL) registered a sales decline of 7.2% in the month of February 2020 after pushing 40,010 units in the timeframe for the domestic market. In the same period in 2019, Hyundai sold 43,110 units. The company’s exports stood at 8,900 units in February 2020, against 11,408 units from the corresponding month last year seeing a decline of 22%. Cumulatively, Hyundai India saw a decline of 10.3% in February 2020 by selling 48,910 units as in February 2019, HMIL manufactured and sold 54,519 units.
This declining trend for HMIL has continued as the manufacturer saw a marginal sales decline in 2019 as well. In February 2019, HMIL has registered a cumulative sales decline of 1.6% while domestic sales declined by 3.1%. Since then, Hyundai has introduced new models like the venue, Elantra, Nios and Aura, but the situation for the automotive sector still shows no signs of recovery as yet. However, it is believed that the first half of 2020 will continue to be difficult for the auto sector. Some experts, on the other hand, are expecting the second half of the year may tell a different and positive story for the industry.
Another anomaly that the Indian automotive sector is also being impacted by is the Coronavirus that has hit China. Due to the epidemic in China, supply chains of Indian automakers who source components from China like Tata, Mahindra and MG Motor have all confirmed that their supply chains have been affected. However, major automakers like Maruti Suzuki who’s production is almost 100% localised will not be affected, but Hyundai has stated that while the Coronavirus has not impacted their production as yet, they will continue to monitor the situation.
