If you look at the sales numbers just momentarily, it will seem like Hyundai India had a pretty good run last month. May 2021 saw the Korean auto major moving 25,001 units in the country, thereby registering a year-over-year (YoY) growth of 263 percent. This is in stark contrast to how Hyundai performed in May 2020, when it sold just 6,883 units. Of course, we all know that such low volumes were down to the fact that the country (plus the whole world) was going through a pandemic. Therefore, it is understandable why automakers sold so few cars this time last year.
On the other hand, Hyundai India’s exports in May 2021 stood at 5,700 units. For comparison, the brand shipped 5,702 units over the same period last year. This means that there has been all but negligible growth when it comes to exports. At the same time, cumulative sales (domestic + exports) by Hyundai India accounted for 30,703 units last month, with May 2020 numbers coming to 12,583 units. Meanwhile, the company’s month-over-month (MoM) performance took a dive, posting a degrowth of nearly 49 percent. This decline becomes evident when you take a look at April 2021’s cumulative sales figure of 59,203 units.
At the end of May, Hyundai India had to shut down its production facility in Chennai, Tamil Nadu, due to the staggering rise in Covid-19 cases. Obviously, the state government had ordered all but essential services to remain shut. Initially, Hyundai India had planned for about a week-long closure of its plant, resuming production gradually. However, there has been a hitch as workers have been hesitant due to the ongoing situation. The situation has been complicated further as the shortage of semiconductor chips globally has put automakers under tremendous pressure. While Hyundai India can find a way to sort out issues with its workforce, it really can’t do much when it comes to the semiconductor shortage.
On a positive note, the Korean automaker contributed Rs 10 Crore towards Covid-19 relief efforts in Tamil Nadu. This included Hyundai India procuring vital medical equipment such as oxygen concentrators, nasal oxygen machines, and N95 masks (among others) for hospitals and NGOs. Moreover, the company is looking forward to launching the all-new Alcazar SUV in India very soon. The Hyundai Alcazar is a three-row crossover SUV that is based on the outgoing Creta. Going up against the likes of the MG Hector Plus and Tata Safari, the Alcazar should help Hyundai to solidify its presence in the segment. Hyundai India currently sells models such as the Santro, Grand i10 Nios, i20, Aura, Xcent Prime, Verna, Elantra, Venue, Creta, Tucson, and Kona Electric.