Auto sales numbers: Recovery visible, but still a long way to go
According to dealers, sales numbers may be adversely affected due to supply and components shortage
The auto sector in India is on the recovery path after encountering lockdown-induced challenges.
Passenger vehicle sales segment has witnessed appreciable growth in the past few months. The latest figures show that the sales volume of passenger cars in India has surpassed pre-Covid monthly sales of February last year.
Last month, OEMs registered cumulative sales of 3,08,611 units of passenger cars. This segment has shown month-on-month and year-on-year growths of 1.55% and 20.25%, respectively.
Maruti Suzuki recorded sales volume of 1,44,761. The company recorded MoM growth of 4% and captured a 46.9% share of the Indian market.
Tata Motors registered a sales volume of 27,224 units. The homegrown automaker has shown tremendous growth in the recent few months to become the third-largest car manufacturer in India with a market share of 8.8%.
Hyundai’s sister brand Kia with sales of 16,702 cars in February 2021. The company witnessed a fall in MoM sales of 12 percent and an increase in YoY sales by 7 percent. Mahindra, despite huge impending orders of Thar, was only able to deliver 15,380 cars last month, therefore recording an MoM degrowth of 25%. It although showed a YoY growth of 43%.
Toyota dispatched 14,069 units to dealerships, logging in MoM growth of 26% and a market share of 4.6%.
According to the ICICI Securities report, passenger vehicle registrations improved 9% YoY but declined 10% MoM aided by low base effect, while 2 wheeler registrations declined by 18% YoY and 6% MoM. Tractor demand remained the strongest up by 15% YoY compared to other segments, which continues to be driven by strong agri-cash flows.
The premium segment of the PV portfolio is witnessing strong waiting periods as demand remains robust in higher-income groups. PV OEMs are still grappling with supply-side issues with semi-conductor shortages, rising material costs, etc leading to below-normal production. These supply shortages as likely to persist till Q1FY21. reads the I-Sec report.
However, according to dealers, sales numbers may be adversely affected due to supply and components shortage. Rising fuel prices will also act as a dampener, they feel.