India’s auto sales remain upbeat in July

India’s major automakers reported auto sales of 1.92mn units in July, up by 17pc growth from a year ago. Higher passenger vehicles sales in July boosted overall sales of automakers. Stress in the rural economy due to COVID-19 and heavy rain hampered two-wheeler sales.

Maruti Suzuki sold 162,462 units, 50pc higher than last year while Kia reported a 77pc increase in sales, Honda India sales rose by 12pc, and Toyota Kirloskar’s sales zoomed by 143pc in July over the previous year.

Escorts’ domestic tractor sales stood at 6,055 tractors in July as against 4,953 tractors last year, registering a growth of 22.2pc. The company said that a three-week slowdown in monsoon activity from mid-June to mid-July temporarily affected the sowing of Kharif crops leading to some slowdown in sales in July. Monsoon has now caught up to be normal which should augur well for the remaining months of the year. With most dealerships now open and are able to fully serve customers, sales should improve. The company pointed out that commodity inflation continues to put pressure on the margins despite three price increases in the last nine months.

M&M farm segment also stated that demand remained buoyant in July with crop sowing operations gaining traction with monsoon picking up pace across all the regions. M&M continues to stay bullish on tractor demand in the coming months owing to the revival of the monsoon.

Despite the opening of retail touch-points across the country, Hero MotoCorp said localized lockdowns in some states restricted customer footfall, hampering demand. Hero opined that India’s rural economy and the semi-urban market are expected to bounce back on a good monsoon. The company remains optimistic about continuously improving consumer sentiment in the coming months with the onset of the festive season.

Commercial vehicle manufacturers, Ashok Leyland and Eicher Motors reported stellar sales growth with 81pc and 96pc, respectively, compared to July 2020. Tata Motor’s commercial vehicle segment also recorded a growth of 88pc compared to July last year.