The industrial car phase is witnessing a increase. Regular demand for 2 wheelers is a serious 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. Nonetheless, the general efficiency of the phase 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 items in February 2022. The corporate bought 144,761 items in February 2021. Its whole home gross sales (together with passenger autos and lightweight industrial autos) stood at 137,607 items. This yr compared to 147,483 items in February 2021.
The scarcity of digital elements had a minor affect on the manufacturing of autos bought within the home market. In keeping with the corporate, it took all potential measures to reduce the affect.
Hyundai, which reported a 15% year-on-year gross sales decline, mentioned the business, which is grappling with semiconductor shortages, is exploring choices to make sure that clients can take supply of their vehicles as quickly as potential.
Concerning the firm’s general gross sales, Vijay Nakra, Chief Govt 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 availability of semiconductor associated elements to take acceptable corrective motion.
Kia India, which is among the many high 5 carmakers, mentioned Seltos remained the highest contributor to its general gross sales with 6,575 items, whereas Sonet and Carnival contributed 6,154 and 283 items respectively. The not too long ago launched provider dispatches stood at 5,109 items.
The carmaker not too long ago began the third shift in India and is focusing on to provide over 3 lakh items within the calendar yr. “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), Toyota Kirloskar Motor additionally mentioned that the general sentiment available in the market stays optimistic. “This has led to a gentle enhance so as bookings, particularly for the Innova Crysta in addition to the Fortuner and as a subsequent step, we’re wanting 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 phase, reported a greater than five-fold enhance in gross sales to 4,503 items final month. Nonetheless, the carmaker mentioned, “Gross sales in February 2022 have been primarily pushed by Kushak SUVs.”
Though the wholesale gross sales of two-wheelers have improved month-on-month, they continue to be within the crimson as in comparison with the identical month final yr. OEMs have reported a decline in home gross sales, on account of weak demand from the agricultural sector, rising commodity costs and an anticipated rise in gasoline costs. Nonetheless, 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 items and scooter gross sales declined 52.5% to 19,800 items in February 2022.
In the meantime, its greatest competitor Honda Bike and Scooter India (HMSI) noticed a decline of round 1.25 lakh items in February 2022 as in comparison with the identical month final yr.
Chennai-based TVS Motor Firm mentioned its bike gross sales elevated from 137,259 items in February 2021 to 143,523 items in February 2022. The corporate’s scooter gross sales have been recorded at 86,616 items in February 2022 as in opposition to 95,525 items 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 Scores, ICRA mentioned the two-wheeler business registered a sequential decline of 8% in home wholesale volumes in February. These have 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 items. The continued affect of worth hikes and gasoline inflation on shopper sentiment on the decrease finish of the demand pyramid. Nonetheless, the business stays cautiously optimistic about restoration within the subsequent fiscal,” he mentioned.
Royal Enfield, a unit of Eicher Motors, additionally mentioned that provide chain constraints on account of scarcity of semiconductor chips continued in the course of the month and the corporate is working with its provider ecosystem to resolve the identical.
Being a direct reflector of the state of the economic system, this phase is slowly gaining momentum with the advance in freight site visitors and all OEMs reporting their wholesales in inexperienced.
Section chief Tata Motors reported gross sales of 10,233 items of M&HCV, 5,599 items of i&LCV, 1,759 items of passenger provider and 16,303 items of SCV cargo and pickup.
The largest gainer in the course of the month was Mahindra & Mahindra (M&M), which noticed LCV (<2T class) gross sales rise to 4,048 items as in comparison with 1,175 items bought in February final yr. LCV gross sales for the 2T-3.5T class additionally elevated to fifteen,431 items from 7,446 items bought in February final yr.
The automaker’s three-wheeler gross sales jumped 62% to 3812 items and LCV (>3.5T class) + MHCV rose 18% to 687 items.
VE Business Automobiles (VECV), a three way partnership of Volvo Group and Eicher Motors, mentioned the entire home gross sales of Eicher-branded industrial autos (CVs) final month stood at 5,093 items, as in opposition to 4,825 items within the year-ago month. 5.6%. Gross sales of the Volvo-branded CV stood at 111 items as in comparison with 122 items in the identical month final yr, a decline of 9%.
Tractor gross sales declined year-on-year on account of greater base of final yr. Nonetheless, the underlying demand drivers stay intact.
Hemant Sikka, President, Agricultural Tools Sector, Mahindra & Mahindra Ltd. mentioned, “Agriculture indicators have all the time remained excessive and promising with excessive liquidity with farmers approaching Rabi sowing on account of well timed and document procurement of Kharif crops. With document growth 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 concentrate on growing the depth of summer time crops will deliver extra revenue within the fingers of farmers. Within the export market, we’ve got bought 1527 tractors with a rise of 56% over final yr,” he mentioned.
In keeping with Escorts, wholesale gross sales of tractor business continued to say no in February 2022, on account of greater base of earlier yr, enhance in retail costs on account 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 yr, good degree of water reservoirs, enhance in Union price range allocation for rural and agriculture sector and early indicators of regular monsoon subsequent yr with optimistic momentum for the tractor business within the coming yr. will present.