Maruti Suzuki, Hyundai and others see sales plunge by 80% in May with exports taking a massive hit during the lockdown

• The Indian automobile sector reported a sharp decline in monthly sales for May 2020.
• Companies continue to struggle under the partial resumption of plants and lower production.
• Automobile sales in India have taken a massive hit since March 23 — when the government announced a nationwide lockdown to deal with the COVID-19 pandemic.

The sales of India’s COVID-19-battered automobile companies in May remained at historic low levels as factories came back to life and dealerships opened up — but customers continued to stay away.

Automobile sales in India were already on a downtrend in India for over a year. It has only gotten worse since March 25⁠ when the government announced a nationwide lockdown to deal with the COVID-19 pandemic.

Both production and sales came to a grinding halt and makers could not sell a single unit in April — despite running offers and schemes to try and boost sales. Some factories restarted in May, but the monthly auto sales data is far from encouraging.

“While most auto manufacturers have received permission and have opened their plants, the entire production ecosystem is yet to fall in place due to supply-side constraints, permission to operate with the limited workforce at plants and limited support from dealers and financiers,” said a report from Nirmal Bang, a broking firm.

It expects the pressure to continue as commercial vehicles is one of the worst-affected segments due to “excess capacity and limited drive availability.”

Maruti Suzuki India	May 2020 sales	May 2019 sales	Drop in sales %
Domestic sales	13865	125552	89%
Exports	4651	9089	49%
Total sales	18539	134641	86%
Escorts	May 2020 sales	May 2019 sales	Drop in sales %
Domestic sales	6454	6488	0.50%
Exports	140	339	58.70%
Total sales	6594	6827	3.40%
Hyundai Motor India	May 2020 sales	May 2019 sales	Drop in sales %
Domestic sales	6,883	42,502	84%
Exports	5,700	16,600	65.60%
Total	12,583	59,102	78.70%
Mahindra & Mahindra	May 2020 sales	May 2019 sales	Drop in sales %
Domestic sales	9,076	43,056	79%
Exports	484	2,365	80.00%
Total	9,560	45,421	79.00%
TVS Motor Company	May 2020 sales	May 2019 sales	Drop in sales %
Two-wheeler	56,218	294,326	83.00%
Three-wheeler	2,688	12,780	79.00%
Total	58,906	307,106	81.00%
Royal Enfield (RE)	May 2020 sales	May 2019 sales	Drop in sales %
Total	19,113	62,371	69%

SEE ALSO: May monthly auto sales data is unlikely to fire up the spirits

HUL CEO says the product inventory range will be smaller and simpler hereon⁠— analysts believe others may have the same plan