The industrial car section is witnessing a growth. Regular demand for 2 wheelers is a significant concern. Tractor gross sales are anticipated to select up.
Following is the segment-wise report of auto gross sales in February 2022.
As chip provide improved, automotive manufacturing improved and bulk dispatches additionally elevated. Nevertheless, the general efficiency of the section was affected by the decline in gross sales of market leaders Maruti Suzuki and Hyundai Motor as in comparison with gross sales in February 2021.
Aided by new launches, Tata Motors and Mahindra & Mahindra (M&M) posted year-on-year gross sales progress.
Maruti Suzuki mentioned it reported a 7.4% decline in passenger car home gross sales to 133,948 models in February 2022. The corporate bought 144,761 models in February 2021. Its whole home gross sales (together with passenger automobiles and lightweight industrial automobiles) stood at 137,607 models. This 12 months compared to 147,483 models in February 2021.
The scarcity of digital parts had a minor impression on the manufacturing of automobiles bought within the home market. In keeping with the corporate, it took all potential measures to attenuate the impression.
Hyundai, which reported a 15% year-on-year gross sales decline, mentioned the trade, which is grappling with semiconductor shortages, is exploring choices to make sure that prospects can take supply of their vehicles as quickly as potential.
Concerning the firm’s general gross sales, Vijay Nakra, Chief Government Officer, Automotive Division, M&M Ltd. mentioned, “All segments witnessed robust progress together with SUVs at 79%, which registered the best ever month-to-month volumes. “
He mentioned the corporate expects robust demand to proceed because the Covid state of affairs eases. It’s carefully monitoring the provision of semiconductor associated components to take acceptable corrective motion.
Kia India, which is among the many prime 5 carmakers, mentioned Seltos remained the highest contributor to its general gross sales with 6,575 models, whereas Sonet and Carnival contributed 6,154 and 283 models respectively. The not too long ago launched provider dispatches stood at 5,109 models.
The carmaker not too long ago began the third shift in India and is concentrating on to provide over 3 lakh models within the calendar 12 months. “We’re hopeful of some enchancment in provide chain constraints from Q2 onwards,” mentioned Yung-sik Sohan, Chief Gross sales Officer, Kia India.
Atul Sood, Affiliate Vice President (Gross sales and Strategic Advertising and marketing), Toyota Kirloskar Motor additionally mentioned that the general sentiment out there stays optimistic. “This has led to a gradual enhance so as bookings, particularly for the Innova Crysta in addition to the Fortuner and as a subsequent step, we’re trying ahead to clear the pending orders from our finish.”
Skoda Auto India, which not too long ago launched the Slavia sedan and is betting on the mid-sized sedan section, reported a greater than five-fold enhance in gross sales to 4,503 models final month. Nevertheless, the carmaker mentioned, “Gross sales in February 2022 had been primarily pushed by Kushak SUVs.”
Despite the fact that the wholesale gross sales of two-wheelers have improved month-on-month, they continue to be within the pink as in comparison with the identical month final 12 months. OEMs have reported a decline in home gross sales, as a consequence of weak demand from the agricultural sector, rising commodity costs and an anticipated rise in gasoline costs. Nevertheless, the easing of COVID restrictions has resulted within the opening of instructional establishments and workplaces, which is a optimistic issue for the sale of two-wheelers.
For February 2022, Hero MotoCorp bike gross sales declined by 27% to three,38,454 models and scooter gross sales declined 52.5% to 19,800 models in February 2022.
In the meantime, its greatest competitor Honda Bike and Scooter India (HMSI) noticed a decline of round 1.25 lakh models in February 2022 as in comparison with the identical month final 12 months.
Chennai-based TVS Motor Firm mentioned its bike gross sales elevated from 137,259 models in February 2021 to 143,523 models in February 2022. The corporate’s scooter gross sales had been recorded at 86,616 models in February 2022 as towards 95,525 models in February 2021.
“The shortfall within the provide of semiconductors has impacted the manufacturing and gross sales of premium two-wheelers,” the corporate mentioned.
Rohan Gupta, Vice President and Sector Head – Company Rankings, ICRA mentioned the two-wheeler trade registered a sequential decline of 8% in home wholesale volumes in February. These had been down 27% on a year-on-year foundation, indicating that OEM channels proceed to rationalize manufacturing to maintain stock at affordable ranges.
“Conversely, whereas demand for premium 2W (>150cc) is reportedly wholesome, manufacturing is hampered by lack of semiconductor availability. Retail gross sales noticed a quantity decline of three% sequentially (11% YoY), Which accounted for 9.8 lakh models. The continued impression of value hikes and gasoline inflation on client sentiment on the decrease finish of the demand pyramid. Nevertheless, the trade stays cautiously optimistic about restoration within the subsequent fiscal,” he mentioned.
Royal Enfield, a unit of Eicher Motors, additionally mentioned that provide chain constraints as a consequence of scarcity of semiconductor chips endured throughout the month and the corporate is working with its provider ecosystem to resolve the identical.
Being a direct reflector of the state of the financial system, this section is slowly gaining momentum with the advance in freight site visitors and all OEMs reporting their wholesales in inexperienced.
Phase chief Tata Motors reported gross sales of 10,233 models of M&HCV, 5,599 models of i&LCV, 1,759 models of passenger provider and 16,303 models of SCV cargo and pickup.
The most important gainer throughout the month was Mahindra & Mahindra (M&M), which noticed LCV (<2T class) gross sales rise to 4,048 models as in comparison with 1,175 models bought in February final 12 months. LCV gross sales for the 2T-3.5T class additionally elevated to fifteen,431 models from 7,446 models bought in February final 12 months.
The automaker’s three-wheeler gross sales jumped 62% to 3812 models and LCV (>3.5T class) + MHCV rose 18% to 687 models.
VE Industrial Automobiles (VECV), a three way partnership of Volvo Group and Eicher Motors, mentioned the full home gross sales of Eicher-branded industrial automobiles (CVs) final month stood at 5,093 models, as towards 4,825 models within the year-ago month. 5.6%. Gross sales of the Volvo-branded CV stood at 111 models as in comparison with 122 models in the identical month final 12 months, a decline of 9%.
Tractor gross sales declined year-on-year as a consequence of greater base of final 12 months. Nevertheless, the underlying demand drivers stay intact.
Hemant Sikka, President, Agricultural Tools Sector, Mahindra & Mahindra Ltd. mentioned, “Agriculture indicators have at all times remained excessive and promising with excessive liquidity with farmers approaching Rabi sowing as a consequence of well timed and report procurement of Kharif crops. With report enlargement in space sown within the third consecutive Rabi season, we’re optimistic in regards to the highest ever crop manufacturing ranges.”
“As well as, the federal government’s give attention to growing the depth of summer time crops will convey further revenue within the arms of farmers. Within the export market, we now have bought 1527 tractors with a rise of 56% over final 12 months,” he mentioned.
In keeping with Escorts, wholesale gross sales of tractor trade continued to say no in February 2022, as a consequence of greater base of earlier 12 months, enhance in retail costs as a consequence of greater inflation in commodity costs and enhance in costs above regular stock degree alongside the channel Hui.
Going ahead, the tractor maker expects whole rabi sowing this 12 months, good degree of water reservoirs, enhance in Union finances allocation for rural and agriculture sector and early indicators of regular monsoon subsequent 12 months with optimistic momentum for the tractor trade within the coming 12 months. will present.