Final month of the FY brings pleasure to some, warning for all, Auto Information, ET Auto


Demand stays good for OEMs, the difficulty is with the lengthy ready durations and well timed deliveries to the shoppers.

New Delhi: The final month of the monetary 12 months 2021-22 closed on a cheerful be aware, although not for all trade gamers. Aided by easing of provide chains, car wholesale in March mirrored a constructive month-on-month development for the passenger autos. Demand stays good, however the issue is within the lengthy ready durations and delay in deliveries to the shoppers.

Automotive manufacturing is predicted to be affected for the remainder of 2022 due to the semiconductor provide crunch. Consultants counsel Russia-Ukraine warfare and different geopolitical tensions will gasoline the disaster as each the international locations are pivotal automotive enter suppliers.

For the two-wheeler section, the agricultural restoration continues to be distant and the marketplace for commuter bikes is but to get well from the second COVID wave. Added to that is the spiralling gasoline worth which was elevated ten occasions up to now 12 days by a complete of INR 7.20 a litre.

The exceptionally excessive commodity costs, that are not less than partially, because the trade claims, can also be transferred to the shoppers. Within the PV section, Maruti Suzuki is prone to announce shortly a worth hike, the fifth since January 2021. Others like Mahindra & Mahindra (M&M) and Tata Motors are anticipated to observe go well with. Luxurious carmakers like Audi and BMW have already accomplished so.

Within the two-wheeler section, Hero MotoCorp has introduced a hike of INR 2000 from April 1, adopted by Suzuki bikes which has conveyed an increase of 1%-2% to its supplier companions.

In the meantime, the industrial car section is exhibiting a double digit restoration.

The next is a segment-wise report of the car dispatches to sellers throughout March 2022.

Passenger Autos

Whereas the highest two automakers, Maruti Suzuki and Hyundai Motor India, within the section reported de-growth, others like Tata Motors, Toyota Kirloskar and Skoda Auto set a file and reported their highest ever month-to-month gross sales in March 2022.

Maruti Suzuki India Restricted (MSIL)’s home gross sales dropped 8.4% on a year-on-year foundation, nonetheless, its exports zoomed 128% to 26,496 models in March 2022 in comparison with 11,597 models in March 2021.

Its automobiles within the mini class clocked gross sales of 15,491 models in March this 12 months, in comparison with 24,653 models in March final 12 months. Vehicles within the compact class witnessed marginal development with gross sales of 82,314 models in March 2022, as in opposition to 82,201 models in March 2021.

Gross sales of Maruti Suzuki utility autos declined to 25,001 models in March this 12 months, as in opposition to 26,174 models in March 2021. Eeco van additionally noticed a drop in gross sales to 9,221 models in comparison with 11,547 models in the identical month final 12 months.

Maruti Suzuki additionally shared that its home gross sales for the fiscal 12 months ending March 2022 grew during the last two fiscal years, nonetheless, was down 28.6% when in comparison with FY 2018-19.

“As the provision state of affairs of digital elements continues to be unpredictable, it might need some impression on the manufacturing quantity in FY23 as properly,” the carmaker stated in a press release.

Curiously, the amount hole between the second and the third largest carmaker has narrowed from about 20,000 models in March final 12 months, to about 2,000 models in March this 12 months.

Tata Motors, at quantity 3, has been progressively stepping up the ladder within the PV area. Being the market chief within the EV section, its e-car gross sales grew to three,357 models throughout March 2022 as in opposition to simply 705 models in March 2021. Its ICE autos too witnessed an uptick of 34% to 38,936 models in March this 12 months in comparison with 28,949 models in March final 12 months.

Shailesh Chandra, Managing Director, Tata Motors Passenger Autos Ltd, and Tata Passenger Electrical Mobility Ltd, stated that the corporate ended the monetary 12 months with the highest-ever month-to-month gross sales of 42,293 models, a development of 43% vs. March’21 and highest-ever SUV gross sales of 29,559 models.

“EV gross sales continued to witness a fast development in demand on the again of robust acceptance of Nexon EV and Tigor EV. Going ahead, the semiconductor state of affairs stays unsure. We are going to proceed to observe the evolving state of affairs intently and are refining our agile, multi-pronged method to proceed to fulfil buyer orders,” he stated.

Mahindra’s gross sales throughout March 2022 included 27,380 models of utility autos and 223 models of automobiles.

Veejay Nakra, Chief Govt Officer, Automotive Division, M&M Ltd, stated, “Demand continues to be robust, at the same time as we stay watchful of the worldwide provide chain to take applicable motion, as required.”

Home Gross sales March 2022 March 2021 % change
Maruti Suzuki 1,33,861 1,46,203 -8.4
Hyundai 44,600 52,600 -15.2
Tata Motors 42,293 29,654 42.6
Mahindra & Mahindra 27,603 16,700 65.2
Kia India 22,622 19,100 18.4
Toyota Kirloskar 17,131 15,001 14.1
Renault 8,518 12,356 -31
Honda Vehicles 6,589 7,103 -7.2
Skoda Auto 5,608 1,159 383.8
MG Motor 4,721 5,528 -14.5
Volkswagen India 3,672 2,025 81.3
Nissan India 3,007 4,012 -25

For the South Korean automaker Kia, the Seltos SUV remained its best-seller with 8,415 models. Kia Carens picked up tempo, registering 7,008-unit dispatches. Sonet and Carnival contributed 6,871 and 328 models respectively to the March 2022 tally.

Kia India additionally stated that the corporate is properly conscious of the lengthy ready durations and therefore it has commenced the manufacturing in three shifts at its Anantapur facility. “We’re nonetheless within the restoration section, because the semiconductor scarcity stays a priority, which has affected our deliberate manufacturing. Nonetheless, we guarantee our prospects that we’re vigilant of the tendencies globally and taking ample measures to maintain the ready durations in verify,” Hardeep Singh Brar, VP and Head of Gross sales & Advertising and marketing, Kia India, stated.

Toyota Kirloskar dispatched a complete of 17,131 models within the month of March 2022, making it the very best ever home gross sales in a month since July, 2017.

For MG Motor India, gross sales in March this 12 months was “immensely impacted by the provision chain constraints as a result of new COVID-19 variant and the continued international semiconductor chip scarcity.”

Skoda Auto’s March 2022 gross sales was its highest-ever gross sales quantity clocked in a month in its 2-decade-long historical past in India. The earlier excessive for the corporate was 4,923 automobiles recorded in June 2012.

Two wheelers

The 2-wheeler section noticed a dip over March final 12 months; gross sales have been in pink throughout the section. Nation’s largest two-wheeler maker Hero MotoCorp dispatched a complete of 4,25,721 models of bikes and 24,433 models of scooters throughout March 2022.

“With the pandemic restrictions witnessing a gradual withdrawal on account of a gentle decline in Covid-19 circumstances and reopening of all of the sectors of the financial system, we anticipate gross sales momentum to construct up in FY23,” the corporate stated.

Yadvinder Singh Guleria, Director, Gross sales & Advertising and marketing, Honda Motorbike & Scooter India (HMSI) stated that regardless of indicators of moderation, the 12 months FY22 continued to impression enterprise momentum on account of assorted challenges arising from each demand & provide aspect. “Nonetheless, bringing the synergies of recent merchandise together with new enjoyable fashions’ enterprise enlargement has helped us catalyze shopper sentiment in each RedWing & BigWing companies.”

Home Gross sales March 2022
March 2021 % change
Hero MotoCorp 4,15,764 5,44,340 -23.6
HMSI 3,09,549 3,95,037 -21.6
TVS Motor 1,96,956 202,155 -2.5
Bajaj Auto 1,07,081 1,81,393 -40.9
Royal Enfield 58,477 60,173 -2.8
Suzuki Bikes 50,734 60,222 -15.7

Bajaj Auto, the maker of Pulsar bikes, reported the very best year-on-year decline of about 41%.

For TVS, motorbike gross sales grew to 160,522 models in March 2022 from 157,254 models in March 2021. Scooter gross sales of the corporate registered 94,747 models in March 2022 as in opposition to gross sales of 104,513 models in March 2021.

In line with the corporate, the scarcity in provide of semiconductors has impacted the manufacturing and gross sales of premium two-wheelers. “We’re cautiously optimistic that the provision of semiconductors will enhance within the coming months.”

Industrial autos

Nation’s largest industrial car maker, Tata Motors, reported a development throughout the classes. Its home gross sales in March included 14,499 models of M&HCV, 7,555 models of I&LCV, 2,703 models of passenger carriers, and 19,668 models of SCV cargo and pickup.

Girish Wagh, Govt Director, Tata Motors Ltd, stated, “Early indicators of restoration have been seen within the in any other case worst impacted CV passenger section. We’re cautiously optimistic about home MHCV & ILCV demand whereas maintaining an in depth watch on geopolitical developments, gasoline inflation and semiconductor scarcity.”

Home Gross sales March 2022 March 2021 % change
Tata Motors 44,425 36,808 20.6
Mahindra & Mahindra 23,880 21,577 10.6
Bajaj Auto 19,671 17,158 15
Ashok Leyland 18,556 15,761 17.7
TVS Motor 15,036 15,246 -1.3
VECV 8,151 6,221 31

Mahindra clocked a significant portion of its home gross sales from LCVs of 2T- 3.5T section at 15,202 models, adopted by LCVs of lower than 2T at 3,806 models, and LCVs of greater than 2.5T and MHCVs collectively clocking 829 models throughout March 2022.

Its three wheeler gross sales (together with e-3Ws) stood at 4,043 models in March this 12 months, nonetheless down 9% when in comparison with 4,461 models in March final 12 months.

Ashok Leyland’s large chunk of gross sales come from M&HCV class clocking 12,734 models within the home market, and 5,822 models within the LCV class.

VE Industrial Autos (VECV), a three way partnership between Volvo Group and Eicher Motors stated, the home gross sales of Eicher vehicles & buses have been at 7,929 models as in opposition to 6,054 models in March 2021. Gross sales of Volvo vehicles & buses have been at 222 models final month, as in comparison with 167 models in March 2021.

Tractors

Hemant Sikka, President – Farm Tools Sector, Mahindra & Mahindra Ltd, stated, “Report procurement of Kharif acreage, substantial enhance in exports of agricultural merchandise like wheat, sugar and cotton will assist enhance the monetary place of the farmers main to raised money stream within the rural market to assist enhance tractor demand going ahead.”

“Acreage of the kharif crop has already crossed final 12 months’s ranges, which augurs properly for agri incomes. This can get an additional enhance with an early forecast of a traditional monsoon. Within the exports market, we’ve got bought 1651 tractors, a development of 43% over final 12 months,” he stated.

Home Gross sales March 2022 March 2021 % change
Mahindra & Mahindra 28,112 29,817 -5.7
Sonalika
Escorts 9,483 11,730 -19.1

In line with Escorts, the tractor trade wholesales continues to stay subdued in March 2022 on account of excessive base of final 12 months and subdued industrial demand.

“Throughout subsequent 12 months, the tractor demand is predicted to enhance led by greater Rabi output, good stage of water reservoirs, elevated Union finances allocations to rural and agri sector coupled with beneficial crop costs, and preliminary constructive forecast of 2022 monsoon season as regular, all supporting rural buyer sentiments. The rising inflation nonetheless continues to be an space of concern,” it stated.

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For the carmakers, uncooked materials is sort of 75% to 78% of the fee which has seen regular development over the previous few months. Owing to the current geopolitical issues, the worth state of affairs continues to be unsure. The costs of the important thing commodities of metal, plastics, aluminum, copper, rhodium, platinum, and so forth have been stubbornly excessive since 2020.



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