PV spoiled by supply constraints, 2W in red, CV sales improve, Auto News, ET Auto

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The two main automakers in the Indian auto industry reported a decline in domestic sales ranging by 30 percent.

New Delhi:

Diwali is here, as is the hope for a better business for automotive suppliers.

Normally, holiday season sales represent about 40% of annual vehicle sales. But this year, unprecedented supply chain disruptions, fuel price hikes, rising input costs and the resulting spike in vehicle prices, and the economic downturn after the second wave of COVID plagued sales in September and October.

Consumer demand has been positive across all segments, two-wheeler wholesale sales have improved month over month, commercial vehicle sales are steadily recovering.

However, as expected, passenger vehicle shipments to dealers were affected because supply failed to match or exceed consumer demand. Most car models remain on the waiting list and although some automakers’ wholesale sales were better than in September 2021, they remained in the red year-over-year for the leaders in the industry. Marlet.

The following is a report by segment of vehicle sales in October 2021.

Passenger vehicles

The two main automakers in the Indian auto industry reported a decline in domestic sales ranging by 30%.

The Alto and S-Presso mini passenger vehicles from market leader Maruti Suzuki India Limited (MSIL) recorded 21,831 units sold in October 2021, up from 28,462 units in October 2020. Compact passenger vehicles including Baleno, Celerio, Dzire Ignis, Swift, Tour S, and WagonR recorded 48,690 units in the month under review, up from 95,067 units in October last year.

While the shortage of electronic components continued to affect vehicle production during the month, the company took all possible measures to minimize the impact. As a result, the company sold more vehicles than expected sales volume earlier this month, the automaker said on a regulatory filing.

MSIL sold 27,081 units of its UVs which include Ertiga, Gypsy, S-Cross, Vitara Brezza and XL6 against 25,396 units in October 2020. Sales of the mid-segment Ciaz amounted to 1,069 units during the month under review. against 1,422 units in the corresponding month of last year.

On Saturday, Maruti Suzuki said he expected a negative impact on production at its two factories in Haryana and Suzuki’s parent plant in Gujarat in November due to supply constraints in electronic components due to the shortage. semiconductors.

Hyundai Motor India’s passenger vehicle sales fell 34.6% to 37,021 units in October 2021 from 56,605 units sold in the same month last year.

As an exception, automotive major Tata Motors recorded 44% sales growth in October 2021, retaining its third position. The automaker said it sold 32,339 ICE car units and 1,586 electric car units during the month under review.

Riding new model launches, other automakers like Mahindra, Nissan and Skoda also managed to post sales growth, compared to the same month last year. This is happening despite the challenges of the supply chain.

Mahindra sold 20,130 unit passenger vehicles in October 2021, with the utility vehicle segment accounting for 20,034 vehicle sales.

According to Veejay Nakra, CEO of M & M’s Automotive Division, “Demand for vehicles across our product portfolio remains strong. We have received an unprecedented response for the XUV700 and as per our commitment we have started deliveries of the petrol variant to customers. Exports remain strong with an increase of 57%. The supply chain issues for semiconductor-related parts continue to be dynamic as we focus on managing the short-term situation. “

Hyundai’s sister company Kia India said it shipped 10,488 units of Seltos, 5,443 units of Sonet and 400 units of Carnival to dealerships in October 2021.

Tae-Jin Park, MD and CEO of Kia India, said, “The unfavorable supply chain situation has been a lost opportunity for us; however, the continued support of our customers and suppliers has enabled us to maintain healthy performance throughout the year. As we expect the problem to continue over the next few months, we assure our customers to continue to optimize our production as much as possible and ensure timely delivery. “

National sales October 2021 October 2020 % cash
Maruti Suzuki 108,991 163 656 -33.4
Hyundai 37,021 56,605 -34.6
Tata Engines 33,925 23,617 44
Mahindra & Mahindra 20 130 18 622 8
Kia India 16 331 21,021 -22
Toyota Kirloskar engine 12,440 12 373 1
Honda cars 8,108 10 836 -25
Nissan India 3 913 1,105 254
Skoda Auto 3,065 1,421 115.6
MG engine 2,863 3,750 -23.6

According to MG Motor, as the global chip shortage has hampered production, leading to lower sales, the challenge of ensuring on-time deliveries is expected to persist through November and December and he expects this to happen. ‘improves in the first quarter of next year.

V Wiseline Sigamani, Associate Managing Director (AGA) (Sales and Strategic Marketing), TKM, said, “Demand in the market has been robust over the past few months and this can be attributed to various factors in addition to pent-up demand. . Customer orders too. have been steadily increasing, restoring normality to demand trends compared to the pre-Covid period. “

Rajesh Goel, Senior Vice President and Director (Marketing and Sales) of Honda Cars India, said: “In terms of demand, party shopping has kept pace with last year and continues to show good momentum. Our factory shipments in October 2021 have increased by 20%. compared to September 2021, and we were able to wholesale all of our factory stock for the month “

Two wheels

The two-wheelers remained in the red year-over-year, with sales falling by double digits across the segment. However, on a sequential basis, two-wheeler OEMs reported an increase in shipments in October this year compared to September, with the exception of HMSI.

According to the nation’s largest two-wheeler, Hero MotoCorp, “demand during the holiday season has increased as we head to Dhanteras and Diwali, and we expect healthy retail over the course of the year. the next few weeks. “

With the progressive opening of the economy with several other positive indicators, such as the encouragement of agricultural activity and the skyrocketing preference for personal mobility, a rapid recovery in sales is expected in the coming months. , the company said.

Yadvinder Singh Guleria, Director of Sales and Marketing, Honda Motorcycle & Scooter India (HMSI), said: “With the much anticipated festival season underway, we are seeing a gradual increase in engagement recording more requests every day. of potential customers. 2Ds (Dhanteras & Diwali) are fast approaching and we expect this auspicious time to amplify the positivity in terms of conversions.

National sales October 2021 October 2020 % cash
Motocorp hero 5,27,779 7.91.137 -33.2
HMSI 3 94623 4 94 459 -20.1
TV engine 2 58 777 3.01.380 -14.1
Bajaj Auto 1 98 738 2.68.631 -26
Suzuki Motorcycles 56,785 67 225 -15.5
Royal Enfield 40,611 62,858 -35.3

TVS Motor said it sold 1,732,361 motorcycles in October compared to 1,733,263 units in the same month a year ago. Scooter sales stood at 1,13,124 units last month, up from 1,27,138 units sold in October 2020. The company expects retail sales to improve significantly in the coming months.

Devashish Handa, Vice President of Suzuki Motorcycles, said, “As we enter the holiday season in India, the good news is that demand is back in the market. We hope that the situation will improve soon and that we will be able to fully meet the demand, ”he added.

Commercial vehicles

Commercial vehicle (CV) sales in October 2021 were in the green, with the exception of Mahindra & Mahindra which recorded a 21% year-over-year sales decline.

The segment leader, Tata Motors, sold 7,644 units of M & HCV, 5,599 units of I & LCV, 958 units of passenger carriers and 17,025 units of SCV freight and vans.

National sales October 2021 October 2020 % cash
Tata Engines 31 226 26,052 20
TV engine 13,520 12,603 7
Mahindra & Mahindra 18,604 23 716 -21.5
Bajaj Auto 19,827 12,529 58
Ashok Leyland 10,043 8 885 13
VECV

The domestic sales of medium and heavy commercial vehicles of Ashok Leyland, flagship of the Hinduja group, amounted to 5,254 units against 3,881 units in October 2020, an increase of 35%. However, sales of light commercial vehicles in the domestic market fell 4% to 4,789 units last month from 5,004 units in October 2020.

Tractors

Hemant Sikka, President of Agricultural Equipment Sector, Mahindra & Mahindra, said: “With a rapid vaccination campaign against Covid exceeding 100 crore in doses in the country, the economy has started to gain momentum, while that rural economic activity continues to be resilient. The monsoon, while normal, ended with heavy rains in September and October. This resulted in a delay in the harvest of the Kharif crop, while also causing higher reservoir levels and moisture content for the Rabi crop. “

“The expectation of a good Kharif harvest, coupled with good preparations for the Rabi harvest and the upcoming festivities, will heighten positive feelings and boost demand in the months to come. In the export market, we sold 1597 tractors with a growth of 65% compared to last year, ”he said.

National sales October 2021 October 2020 % cash
Mahindra & Mahindra 45,420 45,588 -0.4
Escorts 12,749 13,180 -3.3

The main escorts of agricultural machinery and construction equipment noted that the period of Navratri and Dussehra festivals was marked by good attendance and that the delayed sowing and harvest cycle of the current Rabi harvest is in good shape. bodes well for festive retail sales for the industry in November as well, coupled with overall positive rural sentiments due to good rainfall, expected good yields and crop production, higher crop MSPs and better availability of crops. retail financing.

However, he noted that inflation continues unabated and puts pressure on the company’s margins.

(This is a developing story. We will continue to update as OEMs release their sales data).

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“I think we’ve passed the lower end of the curve when it comes to supply. The situation regarding semiconductor supply is still very dynamic and although there seems to have been a good improvement over the last few weeks, we will have to wait and monitor very carefully as the situation is quite dynamic.

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