Autoville gaining momentum in July

Country’s auto sector registered sales of 1,97,523 units in July, just 1% short of July 2019 numbers and steep 69% jump over June’s figures of 1,16,969 units.

- Ritwik Sinha

After going through one of the darkest period in the automobile history, the country’s autoville is gaining momentum with a substantial month-on-month (m-o-m) growth in July.

It seems restrictions in movement of people and in buying capacity could not hold back cars sales for long.

Country’s Motown has registered sales of 1,97,523 units in July, which is just one percent short of July 2019 numbers and also a substantial 69 percent increase over June’s figures of 1,16,969 units.

Though only few manufacturers registered on year growth, all companies managed to improve their performance on a month-on-month basis.

In June, auto sales witnessed a boom on a sequential basis, as May too witnessed lockdown in certain regions. This was also a result of opening up of markets, plants, dealerships etc under the Unlock 1.0 regime.

Wider opening of dealerships was witnessed in July as restrictions were slackened and consumers started stepping out of their houses. Offices started functioning at a higher percentage of work-force than earlier months, due to which personal mobility gained preference.

This led to continuity of strong sales growth in July as well. Ultra-low levels of inventories at dealers’ ends too led to higher wholesale volumes. According to various managements of OEMs, the retail demand has reached 85-90 percent of pre-Covid levels and is expected to move up positively hereon.

Manufacturing facilities are increasing their operating capacity utilization rates, as retail demand becomes robust.

The trend of m-o-m growth to continue as time progresses and dust over the pandemic settles down. Although there is an uncertainty about it, as the Unlock process goes ahead, steady traction in auto sales is expected.