2-MIN READ

COVID-19 Hit Indian Auto Industry Shows Sign of Recovery, Records Almost 30 Percent Growth

Image for Representation (Reuters)

Image for Representation (Reuters)

Recently released sales data from September reveals that the Indian car industry has registered a massive growth of 31 percent in overall sales as compared to the same period last year.

The Indian auto industry, in 2019, recorded its worst ever sales in almost 2 decades, with numbers falling as low as 50 percent. While automakers were expecting a good 2020, riding on the success of some really niche, and feature loaded products launched in the recent time, coronavirus induced lockdown forced automakers to shut their operations right at the very beginning of FY 20.

With the first two months of FY20 gone without any sales, many trade pundits and top bosses predicted no sign of recovery till 2021. On the contrary, the Indian auto industry has started to show the signs of recovery as the festive season begins, an auspicious time when most of the buyers in the country prefer to buy a new vehicle.

The recently released sales data from September 2020 reveals that the Indian car industry has registered a massive growth of 28.92 percent in overall sales as compared to same period last year. In terms of domestic car sales, the growth stood at 31 percent, revealing the increase in exports as well.

A total of 2,92,894 units were sold September 2020 as compared to 2,22,809 units sold last year in September, a heathy 31 percent growth on Y-o-Y basis. Not only this, when compared to last month sales of August 2020, the industry has reported a growth of 25 percent. In August 2020, 234,142 units were sold.

This data reveals that not only is industry recovering from covid-19 setback and initial assumptions that the sales recorded in early months of post-lockdown period were just a pent-up demand created due to vacuum of two-months lockdown in April and May, but also reveals that industry is performing well as compared to the last year, one of the worst periods in the Indian auto industry when the sales went down as low 50 percent.

Almost all the manufacturers barring Toyota, Volkswagen and Nissan showed growth on Y-o-Y basis while MG and Nissan reported negative growth on M-o-M basis.

Kia and Tata Motors have outshined the other brands by registering 147 and 162 percent growth respectively as compared to last year. India's largest manufacturer, Maruti Suzuki also registered a good 34 percent growth. The biggest sales drop was recorded by Nissan at 46 percent negative growth.

Speaking on M-o-M basis, Kia recorded the most growth with 72 percent more sales while MG registered negative growth of 11 percent.

In terms of market share, while Maruti Suzuki and Hyundai are at first and second position, Tata in now third largest manufacturer and Kia the fourth largest. Mahindra completes the top 5 list.

Next Story
Loading