Automobile sector reports 18% drop in sales in FY20

The Indian automobile sector reported more than 18 percent on year drop in sales during FY20 while production during the period fell 15 percent to 26,362,284 units, according to the data released by Society of Indian Automobile Manufacturers (SIAM).

Passenger vehicle (PV) sales fell 17.82 percent to 2,775,679 units and Commercial vehicle sales declined 28.75 percent to 717,688 units YoY, in FY20.

Three-wheeler sales were 636,569 units compared to 701,005 units, down by 9.19 percent and the two-wheeler sales were down by 17.76 percent to 17,417,616 units, YoY.

"The Industry was already reeling under severe degrowth and the pressure of disrupted supply chain, which was followed by a majority of the auto companies announcing a shutdown of their manufacturing units in the last week of March 2020, due to concerns over ensuring workplace safety & health of their employees. As per our estimates at SIAM, Auto industry is losing Rs 2,300 crore in production turnover for every day of closure," said Rajan Wadhera, President, SIAM.

For the month of March, total automobile sales declined 45 percent, YoY.

PV sales dropped 51 percent and commercial vehicles sales fell 88 percent in March, YoY.

Three-wheeler sales during the month declined 58 percent and two-wheeler sales fell 40 percent in March, YoY.

“The month of March 2020 was one of the most challenging months for the Auto sector as the 21-day lockdown resulted in bringing the production and sales of vehicles to a standstill in the last week. As the revenues took severe hit, the OEMs struggled on meeting fixed cost and working capital requirements," Wadhera added.