MG Motor India reports sales growth to surpass 3.5k units in June 2021
June 2021 sales for MG Motor has been steady at 3,558 units. This ensures the company has crossed the 3.5k units per month given the turmoil the industry finds itself in, an average the company has diligently reported multiple times prior. Best seller continues to be Hector, followed by Gloster and ZS Electric.
The auto industry is yet again opening up having dealt with great uncertainties this last quarter owing to unprecedented spread of Covid-19. This meant manufacturing was contained, and dealerships were shut for business as per state notifications.
Last year this time too the market was opening up. With the industry having shut down for weeks starting at the end of March 2020, businesses started limping towards normalcy in May 2020. In June 2020, MG reported 2012 units in sales.
YoY growth stood at 76.84 percent at volume gain of 1,546 units. In May 2021, sales was reported at just over a 1,000 units. MoM growth is noticeable at volume gain of 2,542 units.
Q2 2021 sales
Performance in June helps improve performance for the quarter just ended. Given current market situation, production levels in June were impacted. Add to this, global shortage of semiconductor chips. This will impact production levels in July-August 2021. MG reports retail sales of 7,139 units during Q2 2021. Growth is significant, considering sales was reported at 2,722 units in Q2 2020.
As the market opens up in a phased manner, MG Motor reports an increase in enquiries and bookings. The company continues to build market share on the back of its flagship Hector, Hector Plus, and Gloster. On the electric front, the company sells the MG ZS EV. The company is currently testing MG Astor.
Sales backdrop for 2021
For manufacturers, sales is a reflection of what the nation is enduring. While some recovery is natural owing to pent-up demand being met now, caution is the word now. Considering how rapidly a wave of Covid-19 can bring everyone to its knees, expecting to do business in a normal manner will eventually depend on the country’s health.
Rakesh Sidana, Director – Sales, MG Motor India, said, “We are seeing early signs of positive consumer sentiment in June and potential purchases due to pent-up demand, which was on hold due to the pandemic. Even though some markets are still under lockdown, the ramping up of the vaccination drive has given us hope and we expect the demand to increase during the festival season. However, we have to remain cautious of the potential threat posed by the third wave.”