June 2020 witnessed a hefty sequential improvement in auto OEM volume dispatches amid re-opening of the economy across most regions. Pent up demand built over the past few months (first fortnight of March having been the last 'normal' period of sales) along with return to near usual operational level of dealerships led to 2-4x MoM jump in 2-Ws and 2-3x MoM jump in PVs. The CV performance, while improved, still lagged the rest of the industry. The tractor segment continued to be the clear frontrunner, posting healthy YoY growth even as other segments remained well below last year's readings in these unprecedented times.
M&HCV segment remained an underperformer, reporting dismal >90% declines (with trucks marginally outperforming buses) while LCV decline was more controlled (60-90%). For Q1FY21, Tata Motors (domestic), Ashok Leyland, VECV reported 90.2%, 90.4%, 84% YoY drops, respectively, while M&M's <3.5T LCV performance helped limit quarter's YoY decline to 69.8%.
For tractors, relatively healthy rural income levels (remunerative Rabi crop, government's supportive initiatives and good early monsoon progress) aided in market leader M&M's total volume increase of 10.4% YoY to 36,544 units and Escorts' 21.1% YoY growth to 10,851 units.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Monthly_AutoVolumes_Jul20.pdf