Auto Sales in December 2021: Industry continues to grapple with sales downturn; CVs remain a bright spot
5paisa Research Team
Last Updated: 13th December 2022 - 10:22 am
The demand for PVs, 2Ws and tractors is in red, while commercial vehicle dispatches to dealers are turning green.
Automobile demand was a mixed bag in December 2021, with subdued sales in two-wheeler (2W), passenger vehicle (PV) and tractor segments, while the commercial vehicle (CV) segment continued with a gradual recovery trend. The sentiment however is improving with positive indicators like softening of commodity prices, rise in economic activity, capex, encouraging farm data and marriage season will bring growth in the auto industry in 2022.
Passenger Vehicles:
Market leader, Maruti Suzuki reported domestic sales in December 2021 at 123,016 units, which were down 12% YoY over the same period in 2020. Maruti Suzuki looks forward to an exciting 2022 with several new-gen models lined up for launch. These include the Brezza, Alto, Baleno and S-Cross. A new C-segment SUV along with Toyota is also under development while the 5-door Jimny is slated for launch in India.
Meanwhile, Mahindra & Mahindra (M&M) reported domestic PV sales at 17,722 units in December 2021 as compared to 16,182 units in December 2020, up 9% YoY. The company sits on several pending orders specifically of the new XUV700 and Thar, with production delayed by the ongoing global semiconductor part shortage.
The month of December 2021 saw Tata Motors overtaking Hyundai Motor India to become the second-largest seller of passenger vehicles in the domestic market. Tata Motors posted its highest-ever monthly sales in December 2021 and also the highest quarterly sales, October – December 2021 besides its highest annual sales for the first time in nearly a decade. The car-maker sold 35,299 units in the month of December 2021 as compared to 23,545 in the same month in 2020, recording a near 50% increase in domestic sales.
|
Domestic PV Sales |
Dec-21 |
Dec-20 |
% change |
|
|
|
||||
|
Maruti Suzuki |
123,016 |
140,754 |
-12.60% |
|
|
|
||||
|
Tata Motors |
35,299 |
23,545 |
49.92% |
|
|
|
||||
|
Mahindra & Mahindra |
17,722 |
16,182 |
9.52% |
|
|
|
Two-wheelers:
The country’s largest two-wheeler maker, Hero MotoCorp reported disappointing domestic volumes which came in at a low 374,485 units in December, a fall of 11% as compared to the same period last year. The company said that it continues to monitor the on-ground situation, although localized restrictions imposed by certain states in the wake of rising Omicron cases will continue to restrict the customer movement. Meanwhile, its competitors - Bajaj Auto and TVS Motors saw declines of 0.82% and 17% in domestic sales for the month.
Royal Enfield domestic sales stood at 65,187 units, down marginally by 0.47% YoY as compared to 65,492 units in December 2020.
|
Domestic 2-W Sales |
Dec-21 |
Dec-20 |
% change |
|
|
|
||||
|
Hero MotoCorp |
374,485 |
425,033 |
-11.89% |
|
|
|
||||
|
TVS Motor |
146,763 |
176,912 |
-17.04% |
|
|
|
||||
|
Bajaj Auto |
127,593 |
128,642 |
-0.82% |
|
|
|
||||
|
Royal Enfield |
65,187 |
65,492 |
-0.47% |
|
|
|
Commercial Vehicles (CV):
CV sales continued to display robust recovery due to increasing economic activities, improving sentiments of fleet owners, and a lower cost of ownership under BS-VI vehicles. As compared to last year, the OEMs witnessed a growth in sales volumes in December 2021 apart from Ashok Leyland.
Tata Motors, TVS Motors, Bajaj Auto and Ashok Leyland dispatched 31,008 units (up 3.76% YoY), 15,541 units (up 12.25% YoY), 18,386 units (up 67.69 % YoY) and 11,493 units (down 3.05% YoY), respectively, in December 2021.
|
Domestic CV Sales |
Dec-21 |
Dec-20 |
% change |
|
|
|
||||
|
Tata Motors |
31,008 |
29,885 |
3.76% |
|
|
|
||||
|
TVS Motor |
15,541 |
13,845 |
12.25% |
|
|
|
||||
|
Mahindra & Mahindra |
18,418 |
16,795 |
9.66% |
|
|
|
||||
|
Bajaj Auto |
18,386 |
10,964 |
67.69% |
|
|
|
||||
|
Ashok Leyland |
11,493 |
11,855 |
-3.05% |
|
|
|
Tractors:
Tractor sales in December were disappointing with Escorts and M&M both reported lower sales numbers on a YoY basis. In the domestic market, Escorts sold 4,080 units in the month of December 2021, down 43% as compared to 7,230 units sold in December 2020.
M&M reported domestic tractor sales which stood at 16,687 units in December 2021 as compared to 21,173 units in December 2020, down 21%. Commenting on the performance, M&M President - Farm Equipment Sector, Hemant Sikka said the de-growth in December has been on account of a combination of factors, including the high base of last year and both delayed and very heavy rainfall in some geographies. He added that momentum to recover in the coming months on account of the good progress of Kharif procurement, bringing liquidity in the hands of farmers and Rabi acreage showing signs of growth over last year.
|
Domestic Tractor Sales |
Dec-21 |
Dec-20 |
% change |
|
|
|
||||
|
Mahindra & Mahindra |
16,687 |
21,173 |
-21.19% |
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||||
|
Escorts |
4,080 |
7,230 |
-43.57% |
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