Auto Sector Improved In July, Tractor Sales Caught Pace

Auto sector improved in July, a tractor caught pace. The auto sector is yet to recover from Corona. The sector has suffered more due to Corona.

However, in the month of July of 2020, there has been an improvement in the auto sector compared to June 2020, while there has been a good increase in tractor sales. This was revealed in Boston & Consulting’s India Economic Monitor report.

According to the report, the auto sector has grown in the month of July, but it is much less than the July month of the previous year. Compared to the month of July last year, 67 percent fewer passenger vehicles have been sold this year.

Tractor sales increased by 36 percent in July of 2020 compared to 2019. If we talk about the figures, 76,000 tractors were sold in the month of June 2019, 93,000 tractors went on sale in June of 2020. 46,000 tractors were sold in July 2019, while 63,000 tractors were sold in July 2020.

Former SIAM president Sugato Sen says India’s agriculture sector has grown significantly. While there was a lockdown in every sector, there was no lockdown in the agriculture sector. This sector was continuously working.

Also, the monsoon was also better this year. In such a situation, sales of tractors increased. Sen said that the automobile sector has been struggling continuously for two years.

Corona broke her back. It is difficult to predict when the sector will emerge from Corona. But by 2024 the golden time of the auto sector is not easy to come by.

As for the sale of the three-wheeler, the Boston & Consulting report says that there has been an improvement in the month of July compared to June. 13,000 three-wheelers were sold in July, while ten thousand were sold in June.

Sales of two-wheelers have also improved in July compared to the month of June. While 10,13000 vehicles were sold in June, 12,81,000 vehicles were sold in July.

Sales increased, supply decreased

The two biggest reasons for the decrease in the production of vehicles are the return of migrant laborers to their homes and the government to set 8-hour shifts per person.

Only 45 to 50 percent of the production is being done in the factories, due to which the supply has come down by 35 to 40 percent. Car company Maruti and Hyundai saw a 20-20 percent jump in sales in August. Hero Motorcop, a two-wheeler maker, has also benefited.

Sales may fall this much

According to the India rating, 20–22 percent in two-wheeler sales, 22–26 percent in four-wheeler sales, 26–30 percent in light commercial vehicle sales, and 35– in larger vehicles — such as trucks, buses, etc.

Sales are expected to decrease by 45 percent. With this, it will take at least a year to improve the monthly sales figures.

Decades of decline

Siam says the loss due to a full quarter of sales due to the coronavirus and subsequent lockdown will affect the total year-over-year number.

At the same time, 2020-21 sales could be less than 1.95 million units sold in 2009-10. Similarly, two-wheelers will also have volumes of less than 12 million sold in 2011-12.