NEW DELHI: Domestic passenger vehicle (PV) sales are expected to return to 75 per cent of normal monthly sales in June 2021, says India's second largest carmaker Hyundai India (HMIL). The same had fallen to 25-28 per cent in May due to second COVID-19 wave and regional lockdowns.
"The industry may register total sales of 2 lakh units in June against 2.7 lakh in a normal month. This is a big improvement from May as 15 per cent of the market is still under lockdown," said Tarun Garg, director, sales and marketing at HMIL.
According to SIAM data, domestic PV sales stood at around 88,000 in May 2021. Preference for personal mobility has become significant during COVID-19 times, Garg said. Vaccination drive and economy growth forecast will also drive sales, he added.
However, rising fuel prices, global supply chain disruption and fear of 3rd wave remains a big concern for the industry. "Rising fuel prices is a very important important concern for buyers and us. It has an inversely proportional relation with auto sales. We are not happy with this trend," he said, adding that semi-conductors shortage issue remains a global concern and like everyone they also remain impacted.
The company said they are working to bring down waiting period for their SUVs. However, customers still have to wait 4-5 months for Creta and 2 months for Venue. Hyundai on Friday expanded its SUV range by launching Alcaraz at a starting price of Rs 16.3 lakh that goes up to Rs 19.99 lakh. The new vehicle will compete against the likes of Tata Safari and MG Hector Plus.
Hyundai currently leads the SUV segment with a market share of 24-25%, up from 11% in 2015. The share of SUVs in the company’s overall sales stands at 44-45%, up from 9% in 2015 and 33% in 2019.
"We expect this contribution to increase to 50% going ahead with the launch of Alcazar. There exists a niche area in the market which we would be able to cater to with the model," said Garg. Hyundai claims the six-seven seater model has received 4,000 bookings over the past 10 days.