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Monthly Auto Volumes - June 2021 - ICICI Direct



Posted On : 2021-06-03 09:29:47( TIMEZONE : IST )

Monthly Auto Volumes - June 2021 - ICICI Direct

May 2021 was a washout month for the domestic auto industry, with the sharp spike in Covid-19 cases taking a toll on economic activity amid localised lockdowns pan India. Plant shutdowns undertaken by OEMs along with supply chain challenges (particularly in relation to global semiconductor shortage) and only partial functioning of dealerships combined to result in a steep double-digit sequential decline across players and segments. It is worthwhile to note, however, that MoM comparison is not entirely meaningful on account of the difficult circumstances.

CV space was severely hit, with all major OEMs reporting >30% sequential decline. Market leader Tata Motors posted 31.5% decline to 11,401 units in which M&HCV truck decline was at 48%. For Ashok Leyland, total CV decline of 62% was surprisingly led by 69% drop in LCVs, while within M&HCV, truck portfolio fell 60%. Bus volumes were up sequentially for both players on a small base. VECV's total sales were down 43% MoM while M&M's <3.5T LCV segment posted 49% decline. The tractor space outperformed the rest of the automotive pack. For market leader M&M, sales were down 12.1% MoM to 24,184 units. Escorts did better, reporting 8% decline to 6,423 units.

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Source : Equity Bulls

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