India’s largest passenger car manufacturer, Maruti Suzuki, declared that it had total sales of 108,000 cars in the month of July 2020 that is 88.2 percent more than June 2020.
The reason behind the boost in sales
This is a clear indication that people are speeding to buy new cars as the lockdown caused due to the pandemic COVID-19 eases and opting for private transport to maintain social distancing and combat the novel virus.
The sales of Maruti Suzuki, India’s largest passenger car manufacturer
Even every year, Maruti’s sales during the month were 1.8 percent and about 98,210 units sold in July 2019.
India’s largest passenger car manufacturer sold 1,307 products as compared to other OEM (Read Toyota Kirloskar Motor), dropping 27.2 percent from 1,796 units sold in the same month before. The figures show direct improvement in market conditions for the company damaged by the lockdown due to the pandemic COVID-19.
Mini cars are excellent for maintaining social distancing.
Sales of mini cars Alto and WagonR reached 17,258 units compared with 11,577 units in the same month last year up to 49.1 percent. Sales for the sedan car segment models such as Swift, Ignis, Baleno, Celerio, and Dzire has noted a decline of 10.4 percent to 51,529 units, as compared to the 57,512 cars in the month of July last year.
It was also observed that mid-sized sedan Ciaz sales dropped to 1,303 units as compared to 2,397 units in the last year of July. However, sales of conventional vehicles that include S-Cross, Vitara Brezza, and Ertiga, increased 26.3 percent to 19,177 units as compared to 15,178 in the year-ago month.
The Domestic Sales and Exports of the Maruti Suzuki
According to reports, the total sales that combine both domestic sales and exports in the month of July this year were 108,064 units that dropped 1.1 percent from 109,264 units sold in the same month in the last year 2019. The automaker exported 6,757 units in July this year that fallen down to 27 percent from 9,258 units recorded a year ago.
Earlier Maruti Suzuki, India’s largest passenger car manufacturer, reported a quarterly loss for the first time for its listing in 2003, as the COVID-19 lockdown and supply chain interruptions weakened demand for the country’s biggest automaker.
COVID-19 impact on automakers across the globe
The novel coronavirus has taken a heavy toll on automakers worldwide. People preferred to stay indoors and had worsened problems for Indian carmakers who were already seeing inventory pile up because of the weak demand. Maruti’s shares dropped as much as 2.5 percent amid coronavirus induced lockdown.
India’s largest passenger car manufacturer Maruti Suzuki, recorded a net loss of Rs 249 crore for the past three months ended June 30 as compared with Rs 1,436 crore a year ago and average loss estimate of Rs 296 crore to Refinitiv data. Maruti Suzuki announced a pre-tax loss of Rs 370 crore as compared with a gain of Rs 1,853 crore in the past year quarter.