Automotive Segment Clocks Decent Growth in December 2020

2020 was an unforgettable time for anyone living on this earth. The year has gone, leaving behind a massive mess which might take years for us to recover. In such a turbulent situation, it is good to know that the Indian automotive market keeps growing despite the undeniable struggle during the first half of the year. Due to the extended national lockdown, all activities in the market were put on hold and earlier launch plan was rescheduled. Even though some of the new models managed to hit the showrooms before the year ends, there are still multiple launches to be delayed until 2021. It means that we have a lot to look for this year. Before throwing ourselves in 2021’s journey, let’s have a look back at how top car brands in our market were doing during the last month of 2020.

Maruti Suzuki

Maruti Suzuki is the largest car manufacturer in the Indian car market. Being the leader of the market, Maruti Suzuki was most effected by the market slowdown. However, the car brand was able to turn things around in the last few months. In December, Maruti Suzuki experienced positive growth of 20 percent compared to the same month last year. The Indo-Japanese car brand sold 1,60,226 units in the last month of 2020 against 1,33,296 units in December 2019. In the previous month, Maruti Suzuki sold 1,53,233 units, suggesting a month-on-month growth of 9.5 percent.

Hyundai Motors

Hyundai Motors also has enjoyed a great month in terms of sales. With a total sales of 47,400, it was the highest December sales for the South Korean car brand, which is a remarkable milestone given the current situation. Looking back, we must agree that this achievement is well-deserved. Despite the eventful year, Hyundai has stuck to its plan and introduced various new models to keep its lineup fresh. Hyundai has launched the all-new Hyundai i20, Hyundai Venue, new-gen Creta, and Grand i10 Nios. In the following year, the South Korean carmaker will continue to launch various new models to keep the momentum going. The most expected upcoming model from Hyundai next year is the seven-seater Hyundai Creta.

Tata Motors

2020 was a hard time for many companies but Tata Motors. In fact, in 2020, Tata Motors emerged as the third best-selling car manufacturer in the market. Last month, the homegrown car brand sold 23,500 units, marking a staggering growth of 84 percent in year-on-year growth. Compared to last month’s number, the Indian car brand also saw a slight increase in sales. It is expected that Tata will keep this positive trend well into 2021 with various new launches. Tata is planning to introduce Altroz Turbo, Gravitas, and HBX in 2021.

Mahindra & Mahindra

In December, Mahindra & Mahindra has sold 16,182 units, registering a small increase of 3% compared to the same month last year. However, if compared to the sales figure in November, the sales number actually went down. Speaking about the sales drop, Veejay Nakra, Chief Executive Officer, Mahindra’s Automotive Division cited “the continuing supply chain challenges related to the constantly changing global environment” and specifically, “the supply shortage of micro-processors (semiconductors) used in Electronic Control Units” as the reasons affecting the overall sales performance of the company. Last year, Mahindra received an overwhelming success with the launch of the Mahindra Thar. The demand for this vehicle has well crossed the production capacity of the car manufacture. It is expected that by expanding the manufacturing capacity, Mahindra can solve this issue.

Overall, the automotive market has shown a clear indication of recovery, even growth despite the unfavourable circumstances. We truly expect that this growth trend will keep going in this year and beyond.