TVS Motor Company has shared its sales figures for the month of March 2020. The Indian automotive industry is going through a tough phase like never before with the nationwide lockdown that was brought about by COVID-19 aka corona virus. Several industries (including automobiles) are witnessing losses in the range of thousands of crore rupees on a daily basis.
The Hosur-based automaker of two-wheelers and three-wheelers garnered a total sales figure of 1,44,739 units last month compared to a much higher 3,25,323 units back in March 2019. This is a sales decline of almost 60%. Out of this, two-wheeler sales accounted for 1,33,988 units and 3,10,885 in March 2020 and March 2019, respectively. Filtering it down further, domestic sales hit 94,103 units last month as against 2,47,694 units a year ago.
TVS Motor Two Wheelers Sales, Exports – March 2020
| TVS Two Wheelers | Mar-20 | Mar-19 | Diff | % |
|---|---|---|---|---|
| Motorcycles | 66,673 | 1,41,086 | -74,413 | -52.74 |
| Scooter | 34,191 | 98,477 | -64,286 | -65.28 |
| Domestic | 94,103 | 2,47,694 | -1,53,591 | -62.01 |
| Exports | 39,885 | 63,191 | -23,306 | -36.88 |
| Total | 1,33,988 | 3,10,885 | -1,76,897 | -56.90 |
Coming to three-wheelers, TVS Motor Company sold 10,751 units in March 2020 compared to 14,436 units in the same month, last year. To summarise, the brand has faced massive losses due to the pandemic. The figures could be even lower this month if the lockdown is extended.
Currently, TVS sells six motorcycles (RR 310, Apache RTR range, Radeon, Victor, Star City+, Sport), five scooters (Ntorq, Jupiter, Wego, Zest 110, Scooty Pep+) and one moped (XL100 range). Recently, it introduced the iQube electric scooter to take on Bajaj’s Chetak. The three-wheeler portfolio comprises of just the King line-up.
TVS Motor Company has successfully updated its entire product portfolio to BS6 emission standards. Initially, Indian automakers were directed to adhere to the stringent BS6 norms before 1 April 2020. In other words, no BS4-compliant vehicle can be legally sold or registered in India post 31 March 2020.
However, no one had anticipated that the country would be undertaking strict lockdown protocols in the last month to which BS4 vehicles were deemed legal. Dealerships (including those of TVS) across India were trying hard to sell their remaining BS4 stock ahead of April 2020 but the lockdown left them helpless. Recently, the Supreme Court had extended the BS4 deadline by 10 days.
Still, dealerships are allowed to sell only 10% of their leftover BS4 stock in this period. For the remaining units, there are three options: (1) register and sell them as used products, (2) consult parent OEM for a buyback, and (3) send them for scrappage (following proper guidelines). Hence, dealerships are heading to inevitable losses unless the concerned authorities come up with a more favourable update to the rule.
Source: Bike - rushlane.com
