Hyundai expects wholesale and retail sales to revive in the July – Sept quarter2 min read . Updated: 14 Jul 2020, 06:39 PM IST
- Hyundai Motor India Ltd expects production and retail sales to inch closer to the pre-Covid -19 levels
- The company also is not witnessing customers settling for cheaper offerings due to economic slowdown
With the retail sales reviving gradually after the easing of the lockdown especially in the smaller cities and rural areas, Hyundai Motor India Ltd – country’s second largest passenger vehicle manufacturer – expects production and retail sales to inch closer to the pre-Covid -19 levels in the July to September quarter.
The company also is not witnessing customers settling for cheaper offerings due to the economic slowdown since bookings for it products like Creta and Venue have been increasing.
With retail sales picking up after the removal of the lockdown in May, most manufacturers are trying to ramp up production according to the demand. Factors like rising cases of Covid-19 and lack of availability of manpower, though, have limited the ability of auto makers to increase production of vehicles.
According to Tarun Garg, director, sales and marketing, Hyundai Motor India Ltd, the company should witness wholesale and retail sales to recover around 80% -90% of the pre-covid-19 levels during the current quarter but rising cases in different parts of the country is proving to a challenge.
“In June sales were around 75% of the last year level and July will definitely going to be better. Bookings have also been good around 90% in the last few weeks. Only in parts of the country where lockdown is being imposed again, sales are dropping. We will have to see how it will impact demand and whether it will a short duration or for long. We are improving and planning to start a third shift as well," added Garg.
In June Hyundai increased it domestic wholesale to 21320 units, compared to just 6883 units in May. The company restarted vehicle production at its Chennai based factory from May 5.
Post lockdown, the company has been witnessing encouraging demand for its sport utility vehicles, Venue and Creta, and have not experienced many customers setting for cheaper cars due to the economic slowdown.
“We have got more than 45000 bookings for Creta and more than 55% is diesel. If a brand is strong and company is good then the Indian market is resilient. Customers are willing to buy cars according to their affordability. As long as the customers see value in a product they are will to go for the latest technology," added Garg.
Hyundai Motor India on Tuesday, announced the launch of the new version of the Tucson, a premium sport utility vehicle, within a price range of ₹22.30 lakh and 27.03 lakh. The new vehicle will come with two litre petrol and diesel engines and might help the company consolidate its position as the leading manufacturer of sport utility vehicles in the domestic market.
Hyundai first showcased the vehicle at the Auto Expo in February last year.