From Bajaj Auto and Eicher to Tata Motors⁠— factories and dealerships are open waiting for ‘pent up demand’

• The auto registrations have recovered to 43-65% of January-February levels with strong search trends for cars and two-wheelers.
• Eicher Motors is witnessing a sharp rebound in redemand, and the new bookings have reached close to pre-COVID levels.
• Jefferies report said Bajaj Auto is also seeing demand normalizing at a faster rate than expected.
• Hero MotoCorp sold around 160,000 units in May, about 30% of its average monthly wholesales in the last financial year.

The COVID-19 crisis has battered India’s automobile sector, but a slow recovery is underway, according to a report from Jefferies, a financial services group. Since the ease of the lockdown, the auto registrations have recovered to 43%-65% of January-February levels with strong internet search trends for cars and two-wheelers, indicating a rebound in consumer interest as well.

The stocks of Tata Motors, Eicher, Bajaj Auto, M&M, Hero Moto and the likes have reflected some of the optimism. “Auto industry has been gradually coming back to life with OEM plants, supply chains and 80-90% of the dealers re-starting operations. OEM’s demand commentary has also improved although concerns remain on the contribution of pent-up demand in this pick-up and hence the sustainability of the recovery,” the report said.

Auto companies and dealers are ramping up operations