Mumbai: The Coronavirus epidemic and lockdown have broken the back of automobile manufacturers. Despite the process of unlocking in May and June, companies making cars, motor bikes and trucks have not received much benefit. Due to the current situation, there was a huge decline in the sales of domestic automobile companies in the April-June quarter. Due to this, their business results for the first quarter of 2020-21 may remain disappointing.
This possibility has been expressed in a research paper released on Monday by financial services firm Jefferies. According to the report, in the coming days, many auto companies like Maruti Suzuki, TVS and Bajaj Auto are going to release their June quarter results.
Truck sales down by 93 percent
“The first quarter of 2020-21 is expected to be one of the worst quarters for domestic automakers due to the steep decline in vehicle sales amid the Kovid-19 crisis,” Jefferies said in a paper. On an annual basis, sales of passenger vehicles and two-wheelers declined by 74 to 78 percent during this period. While sales of trucks fell by 93 percent. The report said 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.
On the basis of the decline in sales in the April-June quarter of the companies, Jefferies has forecast a 71 percent year-on-year decline in the income of companies making core parts of vehicles in the first quarter of 2020-21.
Jefferies has 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.