May 2021 car sales: Toyota sees 92% drop in demand with 707 unit sales

Toyota sales in May 2021 dropped by 92.7% due to lockdown. Sales dropped to 707 units in the month, but its first five months of the year saw better demand than 2020.

By:June 1, 2021 5:58 PM

Toyota Kirloskar Motor has announced its sales performance result for May 2021. The Japanese marquee saw its sales drop to just 707 units in the month. However, the silver lining was the good performance in the months before. In the first five months of 2021 (Jan-May), Toyota registered a total of 50,531 unit sales. In contrast, the automaker sold 24,820 units in Jan-May 2020. The difference shows a 104% growth in demand in comparison to the year before, but both years had their fair share of lockdowns.

In May 2020, Toyota sold 1639 units. But because of the pandemic and sporadic lockdowns, the comparison would not reveal the ideal picture. Due to the severity of the restrictions in May 2021, month on month sales would be the fairer representation to gauge the demand trend. In April 2021, Toyota sold 9622 units meaning month on month, demand fell by 92.7%.

Naveen Soni, Sr. Vice President, TKM said, “Last month witnessed no production at our plants in Bidadi as well as minimal sales owing to the much needed restrictions & sporadic lockdowns in different parts of the country.”

Soni added “We also anticipate that factors like ‘pent up demand’ and the demand for personal mobility will continue to be quite significant once the markets open as consumers will want to own their vehicles instead of using shared or public mobility options. A testimony to this is the fact that we have a very healthy number of pending orders and there has been no significant order cancellation against the orders. However, we will be able to take a better stock of the situation once the restrictions are relaxed.

Even before the state-state-wide lockdown was declared in Karnataka, Toyota has halted operations for its annual maintenance shutdown at its plant in Bidadi. The shutdown was held between April 26 – May 14 which added to the days on non-production days for the manufacturer. Toyota is gearing up to resume productions once the lockdown is lifted and is currently working towards vaccinating its workforce.

TKM’s demand saw an uptake earlier in the year as the manufacturer had recently launched the mid-life cycle updates to its big-ticket products. The 2021 Toyota Innova Crysta and the Toyota Fortuner were launched. Now, the automaker is reportedly working on rebadged versions of the Maruti Suzuki Ciaz and WagonR models. Both to be developed in a similar collaboration with Maruti Suzuki as the Toyota Glanza and the Urban Cruiser.

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