Demand for PV, CV improves; 2W, tractor in red, Auto News, ET Auto

New Delhi: The yr 2021 has come to an finish however not lots of the challenges it has borne. From COVID restrictions, provide chain bottlenecks, international semiconductor scarcity, faltering manufacturing schedules, improve in commodity costs, rising car costs, to the spike in gas costs nonetheless persist. As in the remainder of the world the car trade in India additionally has been traversing via a troublesome highway. Nevertheless, there was some solace in exports and within the gross sales of electrical automobiles within the yr passed by.

Within the final month of 2021, the dispatches for the trade continued to stay a combined bag. Whereas the patron sentiment remained optimistic for carmakers, its restoration was hampered by the continued chip shortages. Two wheelers and tractors remained within the crimson. Nevertheless, business car wholesales to sellers are turning to inexperienced.

The next is a segment-wise report of the car gross sales in December 2021.

Passenger automobiles

Nation’s largest carmaker Maruti Suzuki India Restricted (MSIL) reported a 13% drop in its home PV dispatches to the sellers.

Whole home gross sales (together with passenger automobiles and lightweight business automobiles) stood at 126,031 models in December 2021, as towards 146,480 models in the identical month within the earlier yr.

In line with the carmaker, the scarcity of digital elements had a minor influence on the manufacturing of automobiles throughout final month. The scarcity primarily affected the manufacturing of automobiles offered within the home market. The corporate took all attainable measures to minimise the influence.

An distinctive growth throughout the month was a change of positions. South Korean Hyundai Motor India, which is normally the second largest carmaker out there noticed a drop in gross sales and homegrown Tata Motors grabbed the spot for the primary time in a few decade. Tata offered 33,044 ICE vehicles and a couple of,255 electrical vehicles in December 2021.

Shailesh Chandra, President, Passenger Autos Enterprise Unit, Tata Motors Ltd, mentioned, “The PV enterprise development journey of Tata Motors continued and set a number of new milestones throughout the third quarter of FY22 regardless of witnessing a shortfall in manufacturing as a result of ongoing semiconductor disaster. Decade-high quarterly (Q3) and month-to-month gross sales of 99,002 models and 35,299 models respectively have been recorded.”

Information have been additionally created on the EV entrance as gross sales witnessed a brand new peak of 5,592 models in Q3 FY22. Consequently, EV penetration touched 5.6% of PV Gross sales throughout the quarter versus 1.8% in the identical interval final monetary yr. Going ahead, semiconductor provides will stay the important thing supply of uncertainty. Moreover, the influence of the brand new pressure of Covid must be carefully tracked. We’ll proceed to work on a enterprise agility plan and take proactive actions to mitigate these dangers, he mentioned.

Two-wheelers

With the slowest restoration of the agricultural sector after the second COVID wave, this phase has not taken off to achieve the year-ago stage. Added to this was the exorbitant rise in gas costs which has subdued the demand of the entry-level inexpensive bikes and scooters specifically.

Nation’s largest two-wheeler maker Hero MotoCorp reported a decline in its home gross sales in December, and mentioned it continues to watch the on-ground scenario, though localized restrictions imposed by sure states within the wake of rising Omicron instances will proceed to limit the shopper motion.

Business automobiles

Business car gross sales mirror the state of the nation’s financial system. With the numbers accessible thus far, OEMs witnessed a development in YoY gross sales volumes in December 2021. This may be attributed to the low base of final yr.

Girish Wagh, Government Director, Tata Motors Ltd, mentioned home CV gross sales in Q3 FY22 at 90,529 models have been about 15% larger than in Q2 FY22 and 10% larger than in Q3 FY21.

In line with him, the retail was forward of wholesale by 15% in December 2021, enabling stock alignment. The SCV and ILCV segments continued to learn from the expansion in e-commerce and the growing want for last-mile supply. Building and infrastructure spending by central and state Governments plus rising exercise in sectors comparable to mining, petroleum-oil-lubricants and allied industries facilitated the demand for M&HCVs.

“Going ahead, we count on the scenario to stay fluid because the semiconductor scarcity continues, cases of Covid start to rise and underlying demand continues to stay underneath strain. We’re holding an in depth watch on the evolving scenario and sharpening our agile, multi-pronged method to fulfil buyer orders,” he mentioned.

Tractors

Hemant Sikka, President – Farm Tools Sector, Mahindra & Mahindra Ltd, mentioned, “Degrowth in December has been on account of a mixture of things, together with excessive base of final yr and each delayed and really heavy rainfall in some geographies. We count on momentum to get better within the coming months on account of excellent progress of Kharif procurement bringing liquidity within the arms of farmers and Rabi acreage displaying indicators of development over the earlier yr.”

The corporate offered 1582 tractors within the exports market, marking a development of 27% over the earlier yr.

As per Escorts, rural money flows began to enhance, however trade wholesales have been impacted throughout the month of December 2021 resulting from excessive base final yr. “Going ahead, all macroeconomic components together with wholesome water reservoir stage stay in favour of the tractor trade. We have now taken worth will increase, however rising inflation continues to be a fear,” Sikka mentioned.

(It is a growing story. We’ll maintain updating the numbers because the OEMs launch their gross sales knowledge.)

Additionally Learn:

Tata Motors overtook Hyundai to turn into the second-largest vendor of passenger automobiles within the home marketplace for the primary time in near a decade in December 2021.

The automaker posted complete gross sales of 153,149 models final month. They embody home gross sales of 126,031 models, gross sales to different OEMs at 4,838 models and exports of twenty-two,280 models.