As Covid situation eased, auto sales revved up in June

Major automakers, including Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, Kia, Toyota and Honda, on Thursday reported healthy growth in passenger vehicles sales in June, recovering from the disruptions induced by the second wave of COVID-19.

The country's largest carmaker Maruti Suzuki India (MSI) posted total sales of 1,47,368 units in June, up from 46,555 units in May.

Its domestic dispatches to dealers last month stood at 130,348 units, up from 35,293 units in May, as easing of COVID-related restrictions helped the auto major to dispatch more units to dealerships.

The company's sales of mini cars, comprising Alto and S-Presso, rose to 17,439 units in June from 4,760 units in May this year.

Similarly, compact segment vehicles, including Swift, Celerio, Ignis, Baleno and Dzire, increased to 68,849 units last month from 20,343 cars in May.

MSI's utility vehicle dispatches, including Vitara Brezza, S-Cross and Ertiga, stood at 28,172 units, up from 6,355 in May.

Rival Hyundai Motor India Ltd (HMIL) reported total sales of 54,474 units in June, up from 30,703 units in May.

The automaker's domestic dispatches to its dealerships stood at 40,496 units last month, increasing from 25,001 units in May this year.

"With markets opening up and improvement in customer sentiments, the company is committed to deliver innovative and world class quality products and services meeting and exceeding customers aspirations," HMIL director (sales, marketing & service) Tarun Garg said in a statement.

Homegrown auto major Tata Motors said its passenger vehicle sales in the domestic market stood at 24,110 units in June, up from 15,181 units in May.

"The PV industry continues to witness uncertainty on account of global semiconductor shortage and rising commodity prices, while the demand side is on a progressive recovery path," Tata Motors president Passenger Vehicles Business Unit Shailesh Chandra said.

He further said,"We continue to see strong customer interest in our product offerings, resulting in a strong order book and we aim to fulfil those to the best of our abilities in this supply constrained environment."

Mahindra & Mahindra also reported an increase in passenger vehicle sales in the domestic market at 16,913 units last month, up from 8,004 units in May.

"With the opening up of the market in a phased manner, we are seeing a boost in demand in both urban and rural areas and we expect the upward trend in demand to continue across all segments and markets," M&M chief executive officer (automotive division) Veejay Nakra said.

Toyota Kirloskar Motor's (TKM) June sales stood at 8,801 units, up from 707 units in May this year. It had sold 3,866 units in June last year.

"Having resumed production with a 50 per cent workforce last month after the gradual unlocking in Karnataka, our immediate goal was to cater to the pending orders of our customers," TKM senior vice president Naveen Soni said.

Although dispatches only began by the third week of June, the company has been able to register a 128 per cent growth over domestic sales in June 2020, he added.

MG Motor India also reported an increase in sales at 3,558 units in June.

It had sold 1,016 units sold in the preceding month.

MG Motor India director - sales Rakesh Sidana said, "We are seeing early signs of positive consumer sentiment in June and potential purchases due to pent-up demand, which was on hold due to the pandemic."

"Even though some markets are still under lockdown, the ramping up of the vaccination drive has given us hope and we expect the demand to increase during the festival season.

"However, we have to remain cautious of the potential threat posed by the third wave," he added.

Similarly, Kia India said its dispatches to dealers in June stood at 15,015 units in June, up from 11,050 units in May this year.

"The last few weeks have shown signs of improved customer sentiment, and we continue to be optimistic about the future," Kia India chief sales and business strategy officer Tae-Jin Park said.

Likewise, Honda Cars India Ltd (HCIL) said its June sales were better at 4,767 units, up from 2,032 units in May 2021.

"Our June dispatches were in line with our production output, which we maintained at below 50 per cent of pre-COVID level.

"With the unlocking of many states and reopening of dealer outlets in most markets, we expect car sales to further pick up from this month onwards and will accordingly ramp up our daily production," HCIL senior vice president and director (marketing & sales) Rajesh Goel said.

Photograph: Francis Mascarenhas/Reuters