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Is Auto sector in India on the path of recovery? | How were Dec'20 Auto Sales| Check out the article to find out.
Dec’20 Auto Sales Review
Auto sector was undergoing downturn for quite sometime even before FY20 and then COVID impact further affected the sector. However, since the second half of 2020, auto sector is showing strong signs of recovery. Let us analyse the auto sales as on Dec’20 in this blog.
Dec’20 Auto Sales review
- Pent up demand due to nation wide COVID-19 led lock-down
- Strong festive season post lock-down leading to revenge spending
- Shift to personal mobility due to social distancing norms
- All the Passenger vehicle manufacturing companies have posted strong growth on YoY basis in this month.
- Tata Motors stands out from all the companies by posting a stellar growth on YoY basis as well as on YTD basis.
- Rebound in industrial activity
- Momentum gain in Logistics
- Replacement Demand (rising fleet utilization >70%)
- Ashok Leyland and Tata Motors have posted decent growth in sales volume in this month on YoY basis, however Volvo and Mahindra & Mahindra are still lagging.
- Overall the CV segment is still lagging in terms of volume growth on YTD basis.
- Agriculture sector is amongst the least affected sectors due to COVID-19 led nation-wide lock-down
- Strong growth in rural income on the back of robust agri-output and good monsoon.
- Tractors segment is riding the wave as it is evident from the robust growth posted by companies operating in this segment. This is mainly as most of the macro-economic indicators are favoring agricultural sector.
- Escorts, a pure play in tractors, has posted a stellar growth of 90% on YoY basis in this month followed by a strong growth on YTD basis.
- Strong exports growth
- Pent up demand
- Demand uptick due to festive season
- Overall, Hero MotoCorp has sold highest number of 2-wheelers to the tune of ~4.5 lakhs . Although Hero MotoCorp is a market leader , it registered a muted growth of 5% on YoY basis.
- Bajaj Auto has highest market share in exports and has registered a robust growth of 31% YoY in this month.
- TVS motors has performed well on domestic as well as exports front.