New Delhi:
August brings a way of pleasure throughout the nation, as it’s also synonymous with the start of the festive season in India.In August 2021, the nation was slowly shifting out of the COVID-induced lockdown challenges, however the automobile demand-supply steadiness was unequal. The long-standing semiconductor shortages had been severely impacting the manufacturing schedules.
One 12 months later, the business has seen the availability aspect constraints waning steadily and manufacturing ranges bettering. August 2022 additionally noticed events like Raksha Bandhan, Janmashtami, Hartalika Teej and Ganesh Chaturthi. In order to create pleasure among the many customers, most OEMs are additionally targeted on launching new fashions, automobile facelifts, or introducing particular editions of the prevailing lineup throughout this time.
Going ahead, September brings Onam and Navratri. In October, India will have a good time Dhanteras, Diwali, and Bhai Dooj. With the anticipation of festive season gross sales, which accounts for about 40% of the business’s general gross sales, the OEMs are more likely to construct up stock on the dealerships.
The following is a segment-wise report of car dispatches to sellers throughout August 2022.
Passenger Vehicles
While most OEMs witnessed a development in year-on-year gross sales, the highest three carmakers reported a decline on a sequential foundation.
Car market chief Maruti Suzuki India reported a development of 30% to 1.34 lakh items in its home gross sales over the corresponding interval of final 12 months. On a sequential foundation, its gross sales had been down from 1.42 items in July 2022.
The firm reported a year-on-year development for its mini (Alto, S-Presso) and compact (Baleno, Celerio, Dzire, Ignis, Swift, Tour S, WagonR) automobile classes. Sales for its utility automobiles (Brezza, Ertiga, S-Cross, XL6) and Eeco van was additionally up, nevertheless mid-size Ciaz witnessed a decline in home gross sales in comparison with August 2021.
“The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models,” the maker of Alto and WagonR mentioned.
In July 2022, Hyundai recorded 50,500 unit gross sales within the home market. In August this 12 months, gross sales stood at 49,510 items.
Tarun Garg, Director (Sales, Marketing and Service), Hyundai Motor India, mentioned, “With the continuously improving semiconductor situation, supplies continue to go up enabling us to serve our customers with their car in the festival season that has kicked off in India with Ganesh Chaturthi and Onam.”
Tata Motors reported sales of 47,166 units during the month, including 43,321 units of ICE vehicles and 3,845 EVs. On a month-on-month basis, the maker of Nexon reported a decline both for its ICE and EV sales. In July 2022, the carmaker had crossed the 4,000-mark for its electric car sales.
In domestic sales, Mahindra & Mahindra (M&M), and Kia India reported sequential growth as well.
Veejay Nakra, President, Automotive Division, M&M, said, “August was very exciting with launches across many segments for us. We registered the highest ever SUV volume of 29,516 in August, registering a growth of 87% over August 2021. The supply chain situation continues to remain dynamic for select product lines and we are taking appropriate actions to minimize impact.”
Kia, which has marked its position in the Top 5 carmakers in the country, said its Seltos led the monthly sales with 8,652 units, followed by Sonet at 7,838 units, Carens at 5,558 units and Carnival at 274 units, respectively.
Hardeep Singh Brar, Vice President and Head of Sales & Marketing, Kia India, said, “We have been observing upward gross sales momentum for the reason that starting of this 12 months, and it’s a good signal for the Indian automotive market.”
“Comparing the quarters, our monthly average so far for Q3 of 2022 stands at 7.8% over Q2 and 10.9% over Q1 of this year, indicating gradual improvement in supply chain constraints and healthy consumer sentiment. With the demand and supply curve staying positive, we are optimistic that an excellent festive season in terms of sales is ahead of us,” he mentioned.
Meanwhile, carmakers like Maruti Suzuki and Toyota are set to launch their Grand Vitara and Hyryder throughout this festive season. Mahindra has already introduced the Scorpio-N and the Scorpio Classic. Kia additionally launched a brand new trim of its Sonet SUV. Others like Tata Motors and Renault have launched particular version fashions to create pleasure available in the market.
Yuichi Murata, Director- Marketing and Sales, Honda Cars India, mentioned, “The demand momentum continues to be strong, which is very encouraging and positive for the auto industry as we enter the festive season.”
However, Honda said that on the supply side it continues to face hurdles arising out of global chip shortage, which is affecting production volumes and resulting in extended waiting periods for models.
Czech carmaker Skoda Auto said that in its over 20 year legacy in India, it has sold the largest number of cars in 2022, touching 37,568 total sales, with more than a quarter yet to go. The previous best by the company was 34,678 units sold in 2012.
Klaus Zellmer, CEO, Skoda Auto, said, “We have recorded our biggest year ever in India within the first eight months of 2022. These outstanding results have enabled India to rank among the top three markets for Skoda Auto globally in the first half of this year. A big contribution to fulfilling our global ambitions is coming from India. We are well on track to more than double our sales in 2022 over last year.”
Two-wheelers
During August 2022, the two-wheeler makers across the segment witnessed a growth in wholesales both on a month-on-month basis and when compared to August 2021.
Hero MotoCorp said it expects the momentum to build up in the coming months on account of a combination of factors, including a healthy growth in the country’s GDP, a normal festive season after a gap of two years, better monsoon resulting in decent agricultural harvest and positive consumer sentiments.
On a year-on-year basis, total motorcycle sales of the company grew to 430,799 units in August 2022 compared to 420,609 units in the same month of last year, but scooter sales dropped to 31,809 units as against 33,270 units.
Atsushi Ogata, Managing Director, President & CEO, Honda Motorcycle & Scooter India (HMSI), said, “Market performance is gaining steady momentum against the previous month as well as on year-on-year basis. Welcoming the festive season with an exciting range of products across verticals, we are confident that the celebrations will be amplified further with attractive finance schemes available across our touchpoints.”
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TVS said that with positive market sentiments and the upcoming festive season, the company is optimistic about the demand in the domestic two-wheeler market.
“As the availability of semiconductors has supported in reaching a balanced supply chain, the company is now geared up to swiftly meet the festive demand,” it said.
With the festive season approaching, Suzuki Motorcycles also said that the company is looking forward to an overall positive market scenario in terms of demand and supply.
Satoshi Uchida, Managing Director, Suzuki Motorcycle India, said, “Considering the gradual improvement in the availability of semiconductors, we are confident that the company will be able to retain this sales momentum.”
Commercial vehicles and three-wheelers
The segment was in green. Even on a sequential basis, all the OEMs registered a growth momentum, except the market leader Tata Motors.
For Tata, major portion of sales in the domestic market comes from the SCV cargo and pickup category clocking 14,181 units in August 2022. This was followed by 8,727 units of M&HCVs, 4,106 units of I&LCV along with 2,299 units of passenger carriers.
Mahindra clocks majority of its sale from LCV category of 2T to 3.5T, which stood at 16,940 units during August 2022. Total three wheeler sales for the company were at 4,793 units and LCVs less than 2T category at 3,896 units. LCVs over 3.5T and M&HCV together reported sales of 656 units.
Tractors
Hemant Sikka, President- Farm Equipment Sector, Mahindra & Mahindra, said, “Monsoon has been overall positive with 8% higher than LPA. However the spatial distribution has been deficient in key paddy states of eastern India, thus impacting paddy sowing.”
“We are optimistic that tractor purchases on auspicious days in the festive season will lead to revival in demand, as farmers start preparation for harvesting operations. We are preparing for strong tractor demand in the festive season,” he said.
The company exported 1,382 tractors during the month.
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(This is a developing story. We will keep updating the numbers as the OEMs release their sales data).
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Source: auto.economictimes.indiatimes.com