India June auto sales up, market stays optimistic

Data released by major auto companies in India showed a 25pc jump in sales to 1.72mn units sold in the month of June. This includes passenger vehicles, heavy and light commercial vehicles, two-wheelers, three-wheelers and tractors. 

The hike is seen against the base year where sale figures were low due to the COVID-19 pandemic and resulting restrictions. 

Most auto companies are optimistic about sales gaining momentum in the next few months because of the coming festive season coupled with the forecast of monsoon which boosts the demand for two-wheelers and tractors in the rural sector.

All major auto manufacturers have posted growth in the month of June as compared to that of the past year. Maruti Suzuki’s sales were 157pc higher at 147,368 units, Kia sold 15,015 units and was up by 36pc and Hyundai’s sales climbed significantly by 103pc to 54,474 units sold, to name a few. 

According to M&M’s farm segment management, the fall in COVID 19 cases, the timely arrival of monsoon and an increase in the MSP rates for key Kharif crops have all contributed to the rising demand for tractors.

Hero MotoCorp, the country’s major two-wheeler company said, an improvement in the rural sentiment is expected to revive sales. 

As markets continue to open in a phased manner, manufacturers expect an increase in demand in both rural and urban areas. Additionally, supply chains too have stabilized. However, the shortage of semiconductors continues to be a challenge that is being addressed as a top priority.