Coronavirus impact: Maruti, Hyundai see steep fall in sales in May

Maruti Suzuki India, Hyundai Motor and Mahindra & Mahindra witnessed steep decline in sales last month with only partial operations in place amid the coronavirus-induced lockdown.

New Delhi: Maruti Suzuki India, Hyundai Motor and Mahindra & Mahindra witnessed steep decline in sales last month with only partial operations in place amid the coronavirus-induced lockdown.

The companies are functioning on a limited scale right now with various challenges like supply chain issues and low demand on account of lockdown.

The country's largest carmaker Maruti Suzuki India reported 88.93 per cent decline in sales last month at 13,888 units as compared with 1,25,552 units in May 2019.

The auto major said it has resumed manufacturing operations post-lockdown, strictly in accordance with government regulations and guidelines, from May 12 at its Manesar facility and from May 18 at its Gurugram facility.

Production has also resumed at Suzuki Motor Gujarat Pvt Ltd (SMG), which manufactures cars on a contract basis for MSI, from May 25, it added.

Likewise, the company said its showrooms have also started opening in accordance with Centre and state guidelines in a graded manner across different cities.

Hyundai Motor India Ltd (HMIL) reported sale of 6,883 units in the domestic market last month, down 83.8 per cent from 42,502units in May 2019.

HMIL Director (Sales, Marketing & Service) Tarun Garg said the company has made a humble beginning towards normalcy during the month.

Similarly, Mahindra & Mahindra (M&M) said its domestic sales stood at 9,076 units last month, down 79 per cent from43,056 units in May 2019.

In the passenger vehicles segment -- which includes utility vehicles, cars and vans -- it sold 3,867 vehicles in May as against 20,608 vehicles sold in the same month last year, down 81 per cent.

"Our performance during May has been muted due to the challenges the industry is facing," Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said.

The company has opened 70 per cent of its dealerships, and retail sales have begun, he added.

"We are seeing initial traction for our small commercial vehicles and SUV brands such as the Bolero and Scorpio. As new lockdown norms are being announced, we are hopeful of demand gaining traction in the coming months," Nakra said.

MG Motor India reported retail sales of 710 units in May amidst supply chain constraints due to the lockdown.

In the two-wheeler segment, the country's largest manufacturer Hero MotoCorp reported 82.92 per cent dip in domestic sales last month at 1,08,848 units.

The company's sales in May 2019 stood at 6,37,319 units.

"Ensuring stringent safety protocols for employee and customer wellbeing, Hero MotoCorp scaled-up production in a graded manner during the month, after reopening three of its manufacturing facilities on May 4," the company said.

All six manufacturing facilities of the company in India -- at Dharuhera and Gurugram in Haryana, Haridwar in Uttarakhand, Neemrana in Rajasthan, Halol in Gujarat and Chittoor in Andhra Pradesh -- have now resumed operations with limited production, it added.

(PTI Report)