Auto Inc reflects a mixed bag, pins hope for the holiday season, Auto News, ET Auto

The gap between supply and demand widened and it was a sellers’ market in September.

New Delhi: Midway through FY 22, the Indian auto industry is not out of the woods yet. The industry is weighed down by rising raw material prices and the persistent shortage of semiconductors. The gap between supply and demand widened and it was a sellers’ market in September. Although September was an unfavorable time for Shraadh in northern India, Onam in the south and Ganesh Chaturthi in the west made up for this loss.

Looking ahead, positive consumer demand and the holiday season are boosting sales in general. Automakers in India report their shipments from factories to dealerships as their monthly wholesale figures.

The following is a sector analysis of vehicle sales in August 2021.

Passenger vehicles

Maruti Suzuki India Ltd (MSIL) saw domestic sales decline last month across all segments. However, the company’s exports grew 124% in September year-on-year.

The Alto and S-Presso mini passenger vehicles recorded 14,936 units sold in September 2021, up from 27,246 units in September 2020. Compact passenger vehicles, including WagonR, Swift, Celerio, Ignis, Baleno, Dzire and Tour S, registered 20,891 units during the month. under review, up from 84,213 units in September last year.

“The company’s sales volume in September 2021 was negatively affected due to the shortage of electronic components. The company has taken all possible measures to limit the negative impact, ”the company said.

The automaker also said it expects total vehicle production during the holiday month of October at two of its factories to be around 60% of normal levels due to a global shortage. of chips.

Most OEMs have also announced price increases on their model lineup due to rising input costs.

Automotive major Tata Motors, which grew by 21%, said the growth was due to the recovery in demand in the industry after the second wave of Covid and a strong response to its range of cars and vehicles. SUV.

The market leader in the electric vehicle segment also said the company broke the 1,000-unit EV milestone for the second consecutive month to record its highest monthly and quarterly sales of 1,078 units and 2,704 units respectively. .

Shailesh Chandra, President of the Passenger Vehicle Business Unit, Tata Motors Ltd, said, “Electric vehicle sales have almost tripled with the growing acceptance and popularity of Nexon and Tigor electric vehicles. In the future, demand for cars and SUVs is expected to remain strong over the next holiday season; However, the electronic component supply situation may continue to experience difficult times. “

Veejay Nakra, CEO Automotive Division, M&M Ltd, “The challenges of semiconductor sourcing continue to pose challenges for the automotive industry around the world. We have taken several steps to mitigate the effect and are working to manage the situation as best as possible. We maintained our export growth dynamic with an increase of 61%.

National sales September 2021 September 2020 % cash
Maruti Suzuki 63 111 147 912 -57
Hyundai 33 087 50 313 -34
Tata Engines 25,730 21,199 21
Mahindra & Mahindra 13134 14857 -12
Kia India
Toyota Kirloskar engine 9 284 8,116 14
Honda cars 6 765 10,199 -34
Nissan India 2,816 780 261
MG engine 3,241 2,537 28
Skoda Auto 3,027 1312 131

Rajesh Goel, Senior Vice President and Director of Marketing and Sales, Honda Cars India Ltd, said, “On the demand side, there is good momentum in the market with improving buying sentiment. However, supply chain hurdles, including the widespread chip shortage, are currently a big challenge for the industry, which has impacted our production volume and shipments over the past month. “

Nissan India, which is back in the game with the launch of its Magnite SUV last December, said it was receiving strong bookings ahead of the holiday season.

Rakesh Srivastava, managing director of Nissan Motor India Ltd, said the challenge lies on the supply side with the semiconductor shortage the company is working on with supply chain partners.

Two wheels

While OEMs have seen sequential growth, year over year the segment was in the red in September 2021.

India’s largest two-wheeler, Hero MotoCorp, said volume growth on a sequential basis indicates a gradual recovery in the economy.

“As the peak holiday season approaches, the company remains optimistic about demand over the coming months. Normal monsoon and encouraging agricultural activity are likely to contribute to the positive feelings of customers. The acceleration of vaccination campaigns and the preference for personal mobility should also lead to a rapid recovery in sales, ”he said.

While domestic sales recorded a decrease, the company’s exports rose 35% to 24,884 units from 18,425 units in September 2020.

National sales September 2021 September 2020 % cash
MotoCorp Heroes 5,05,462 6.97.293 -27
HMSI
TV engine 2 44 084 2.41.762 0.9
Bajaj Auto 173 945 219,500 -21
Suzuki Motorcycles 55,608
Royal Enfield

Satoshi Uchida, Managing Director of Suzuki Motorcycles, said, “We continue to experience very strong demand from domestic and overseas markets. However, supply chain constraints encountered in the country and around the world have impacted our efforts to meet increased demand. “

Commercial vehicles

Last year, this segment was the most affected while faltering under the impact of a sharp drop in volumes due to fear of Covid for public transport, economic uncertainty and revised standards. portage. However, domestic sales have improved year over year.

Girish Wagh, Executive Director of Tata Motors Lt, said: “After the second wave of COVID, markets are witnessing a gradual recovery in demand in most of the M & HCV-led segments with improving levels of fleet utilization. , higher number of awarded road construction projects and improved cement consumption. “

Hemant Sikka, President of Agricultural Equipment Sector, Mahindra & Mahindra Ltd, said: “The strong resumption of rainfall in September has thrilled the farming community as the entire rainfall deficit was cleared by the end of September and the monsoon reached normal levels. . This is a normal or above normal consecutive monsoon for the third year. Reservoir levels have improved and excessive rainfall in September will result in high soil moisture content leading to heavy seeding of Rabi. “

“With the first estimates of agricultural production pointing to the highest Kharif harvest on record, coupled with the upcoming holiday season, we are optimistic about strong demand in the coming months,” he said.

Escorts Agri Machinery said above-normal rainfall in September delayed harvest in parts of the country, causing a two to four week delay in the start of demand for the holiday season.

However, with record monsoon activity in September, this year’s rainfall deficit has been largely recovered, which bodes well for the industry in the coming months, the company added.

“All other macroeconomic factors remain favorable. Inflation in the prices of various commodities remains a matter of near-term concern,” Escorts said.

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

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However, domestic sales of commercial vehicles rose 99% in September 2021 to 18,403 units, from 9,231 units sold the same month in 2020, the company said.

The company’s exports stood at 5,900 units in September 2021 compared to 211 units in the same month last year.

Major automotive players such as Maruti Suzuki, Hyundai Motor, Tata Motors and Mahindra reported a negative impact on production which led to lower shipments.

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