Auto firms racked up greater than 100 per cent progress in gross sales in March on account of the low base of the identical month final yr.
Nevertheless, business executives warned the numbers have to be seen within the context of final March, when seven days of gross sales have been misplaced because of the lockdown and the pandemic started buffeting progress a lot earlier than that.
The nation had gone into lockdown on March 25.
“Gross sales numbers of March 2021 have been uncharacteristically excessive because of the extraordinarily low numbers of March 2020, which was a cause for the lockdown. Therefore, it can’t be used as a reference for business requirements. The reality is gross sales numbers are decrease than 2015-16 ranges,” mentioned an business govt.
Maruti Suzuki, India’s largest carmaker, reported a close to 100 per cent soar in gross sales in March at 167,014 models in opposition to simply 83,792 models final yr.
ALSO READ: Restoration on a roll: GST mop-up hits report Rs 1.24 trillion in March
Nevertheless, the carmaker registered a decline of seven.8 per cent in gross sales at slightly greater than 1.32 million models in FY21 as in comparison with barely above 1.43 million models in FY20.
The corporate, nevertheless, mentioned gross sales had returned to pre-pandemic ranges. They registered a progress price of 0.8 per cent over March 2019.
Mahindra & Mahindra (M&M) reported gross sales in March at 40,403 autos, in comparison with 6,679 in March final yr.
At Mahindra we’re witnessing excellent momentum in demand. Bolero volumes for March have been the best on this monetary yr and regardless of provide constraints we’ve got been capable of ramp up manufacturing of the Bolero Pik-up considerably throughout the month. We anticipate provide challenges to stay for the following two to a few months after which ease out regularly,” mentioned Vijay Nakra, chief govt officer, automotive division at M&M.
The momentum of excessive numbers was additionally witnessed within the two-wheeler area with Hero Moto Corp, the biggest two-wheeler maker, ringing up a progress price of 72 per cent over the corresponding month within the earlier yr.
The corporate had offered 334,647 models in March 2020.
The restoration in client demand and environment friendly collaboration with our international distributors have enabled us to realize these numbers. Whereas the pandemic continues to influence the worldwide auto business, we’re witnessing sturdy desire for wide selection of bikes and scooters,” mentioned Sanjay Bhan, head of world enterprise on the agency.
Nevertheless, executives and analysts warned the rising variety of Covid circumstances, semiconductor shortages, and excessive gasoline costs remained key challengers for the gross sales momentum to proceed.
Our interplay with main channel companions signifies demand sentiment throughout segments besides two-wheelers stays unaffected, regardless of second concurrent lockdown in sure elements (of the nation). Nevertheless quick provide each in CVs and PVs are impacting retails to an extent 20-25 per cent. Two-wheeler demand continues to stay weak, resulting in additional stock enhance,” analysts at Prabhudas Lilladher mentioned in a analysis report.