Bajaj Auto believes clarity in auto demand will emerge only in August. A sharp increase in July’s monthly compared to April or May could be a result of pent up demand, said CFO Soumen Ray, according to media reports.
Bajaj’s two-wheeler sales in June rose to 255,122 units from 112,798 units in May and 32,009 units in April. Similarly, commercial vehicles sold in June were 22,975 units, up from 5,869 units and 14,330 units in April and May, respectively.
Sales may have been risen compared to the two preceding months when India had announced stringent lockdown measures. But compared to June 2019, two-wheeler sales declined by 27.37pc and commercial vehicles by 56.92pc. Like most other businesses, Bajaj also hopes for demand to return to the usual levels by the festive season of Diwali.
COVID-19 and auto demand
Rating agency ICRA had stated that automobile sales volumes are expected to decline by 15-16pc from the prior year. The passenger car segment is likely to be hit the most. The two-wheeler segment, however, is likely to be less affected as people could opt for their vehicles amid fears of COVID-19 spread through the use of public transportation.
Davis Index had earlier mentioned about a revival in ADC 12 aluminium alloys from two-wheeler manufacturers on July 20.