Hyundai reports 49% decline in domestic wholesales in June1 min read . Updated: 01 Jul 2020, 04:21 PM IST
- Hyundai is working at 40% capacity to comply with safety guidelines, making the manufacturing process cumbersome. Also, lack of demand and high vehicle inventories with dealers has forced the company to limit production
NEW DELHI: Hyundai Motor India Ltd, the country’s second largest passenger vehicle manufacturer, on Wednesday reported a 49.2% year-on- year decline in domestic wholesales to 21,320 units in June due to the disruptions that followed in the wake of covid-19 outbreak.
Exports also fell 67.26% y-o-y to 5,500 units last month.
Month-on-month, however, sales improved from 6,883 units sold in May.
Vehicle manufacturers like Hyundai had to close their factories and showrooms from March 22, following the pandemic and the lockdown that was announced to curb the spread of the disease.
"Our recently launched products like Creta, Verna, Aura as well as traditionally strong brands like Elite i20, Venue, Santro and Grand i10 Nios have been receiving encouraging customer response. This has helped us achieve a wholesale volume of 21,320 units in the domestic market for June," said Tarun Garg, director, sales, marketing and service.
Hyundai has been utilising around 40% of its installed capacity to comply with safety guidelines, making the manufacturing process cumbersome. Also, lack of demand and high vehicle inventories with dealers has forced the company to limit production.
Despite a recovery in sales, auto makers like Hyundai, Maruti Suzuki, Hero MotoCorp Ltd, among others, continue to struggle to ramp up production due to disruption in supply chain network. The renewed lockdown in Chennai and increased inspection of imported parts from China will pose more challenges for automobile companies.