The Indian auto industry is still ailing from a lack of demand for new vehicles. However, new entrants in the Indian market, MG Motor and Kia were the only automakers not to report in red in November 2020.
Since late 2018, the Indian auto industry has been witnessing the worst ever period in demand. The sentiment of buying new cars in India is at its lowest. After the pandemic, the auto sector in India is showing signs of improvement, but it is likely to have been the pent up demand from the lack down period. However, it is too early to tell. The demand in 2019 saw the lowest numbers, thus referring to them would not tell the entire picture. Looking at month on month figures seems to tell the real story of the trajectory. The only real winner in the month of November 2020 seems to be MG Motor whose retail numbers show growth. In October 2020, MG pushed 3,750 units, while in November, the Chinese owned British brand sold 4,163 units. MG recorded month-on-month growth of 11%.
Additionally, the other newcomer to the market, Kia Motors also did not report in red. Although it didn’t see much growth, the Korean brand sold 21,021 units in October and 21,022 units in November.
The top three manufactures in India, Maruti Suzuki, Hyundai India and Tata Motors also were not immune to the demand drought. Selling 1,35,700 units in November against 1,63,656 units in October, India’s largest automaker — Maruti Suzuki saw demand for its cars drop by -17%.
Hyundai India pushed 48,800 units in November as opposed to 56,605 units in October recording degrowth of -14%. Tata Motors pushed 2,000 units less in November selling 21,600 units seeing sales being down by -8%.
Biggest losers in Nov 2020
The biggest losers in the month of November were Ford aftre recording -44% in the negative while Toyota and Volkswagen both registered sales in the red by -31% in sales between October and November 2020.
With a total cumulative unit sales for the industry in November being recorded as 2,86,353 units. October 2020 saw car sales at 3,33,659 units meaning the overall industry month-on-month saw a decline of -14%.
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