Vehicle sales decline in April-June quarter: Due to Corona virus and lockdown, there was a big decline in the sales of automobile companies in the country in the April-June quarter.
Vehicle sales decline in April-June quarter: Covid-19 Crisis and lockdown led to a sharp decline in sales of domestic automobile companies in the April-June quarter. As a result, their business results for the first quarter of 2020-21 may remain disappointing. This possibility has been expressed in a paper released on Monday by financial services firm Jefferies. According to the report, many auto companies like Maruti Suzuki, TVS and Bajaj Auto are going to release their June quarterly results in the coming days.
The first quarter of 2020-21 is expected to be one of the worst quarters for domestic automakers due to a steep decline in vehicle sales amid the Kovid-19 crisis, Jefferies said in a paper. According to the paper, sales of passenger vehicles and two-wheelers have fallen by 74 to 78 percent during this period. While truck sales fell by 93 percent.
The report states that the decline in sales of tractors was slightly better than others. Their sales are likely to fall by 18 to 20 percent. While two-wheeler exports dropped by 62 percent.
Jefferies has forecast a 71 per cent year-on-year decline in earnings for the original components manufacturers of vehicles in the first quarter of 2020-21, based on the companies’ April-June quarter sales decline.
Jefferies made this report by analyzing the data of nine companies making vehicles of different categories. This includes Ashok Leyland, Bajaj Auto, Hero MotoCorp, Maruti Suzuki, Eicher Motors, Mahindra & Mihindra, TVS Motor, Motherson Sumi and Bharat Forge.