Passenger vehicle sales for July 2020 amounted to 1,97,610 units and that’s a huge jump over June 2020. The sales numbers are now almost equal to pre-Covid levels and that’s also due to increased demand for personal mobility.
The coronavirus scare has caused huge economic losses to several industries and the automobile industry was one of the most severely impacted. Automotive sales have been on the slump since 2019 but the biggest blow came to industry when it recorded a grand total of zero sales for April 2020. Although times haven’t improved much since then, economies have opened up and surprisingly, the automotive industry was one of quickest to bounce back to recovery. In July 2020, sales in the entire passenger vehicle segment amounted to 1,97,610 units and that’s almost as good as pre-Covid levels. Take a look at the numbers here from each domestic manufacturer.
As you can see from the table, the total number of vehicles sold in July 2020 is just a couple of thousands short of what was sold in July 2019. While that’s already a remarkable feat, the growth from June 2020 to July 2020 has been even more astounding. In June 2020, a total of 98,482 units of passenger vehicles were sold while in July 2020, the figure is more than double. These numbers definitely signal a positive start to recovery. Moreover, we are seeing many new product launches over the last couple of months, something that’s definitely positively impacting the buyer.
Some car manufacturers like Maruti Suzuki, Tata Motors, MG and Renault even recorded a growth in year-on-year sales in July 2020. In fact, half the total number of sales in July 2020 were Maruti Suzuki cars and they even continued with around 1 lakh sales on an average. Meanwhile, MG Motors recorded a growth of 40% while Renault had an absolute storm with the Kwid and Triber with 75% year-on-year growth. However, not all manufacturers recorded a positive growth, but certainly saw an improvement over the previous couple of months. For brands like Toyota, Honda, Ford, Volkswagen and Nissan, we can soon expect them to one-up their monthly sales over the previous year if the positive trend continues.
In fact, the pandemic actually must be credited for the surprisingly quick rebound of the automotive industry from a time when it was already suffering. With public transportation still nonoperational in most places, the need for personal mobility is more important than ever now. Even where public transportation is available, people are availing or at least are willing to avail private transportation modes. In several studies conducted by several publications, it was noted that those who did not even intend to buy a personal vehicle in the near future, are not looking at personal mobility options.
With an increased demand for personal passenger vehicles, and with manufacturers responding to it in the right manner with a slew of new product launches, the automotive industry seems to be on the right path of recovery. Almost all manufactures have come up with online platforms that provide end-to-end buying services to the consumers, thus further facilitating the process in current times. This also may have been an initial rebound to some residual demand that was unsatisfied during the lockdown, but with more mass market pouring into the market in the coming months, and with the festive season a couple of months away, we certainly have reasons to be positive from here on.