Auto Sales in February 2022: Demand weakness continues; Mahindra & Mahindra witnesses strong domestic sales

The impact of the shortage of electric components has been reduced but many OEMs are still far off from February 2021.

Automobile sales volumes continued to remain under pressure in February 2022, with subdued sales in two-wheeler (2W), passenger vehicle (PV) and tractor segments, although the commercial vehicle (CV) segment continued with a gradual recovery trend. The 2-wheeler segment is one of the worst-hit as the industry’s domestic sales are continuously going down. However, with Union Budget’s rural allocation, the tractor segment is expected to do relatively better in the future.

Passenger Vehicles:

Market leader, Maruti Suzuki reported domestic sales in February 2022 at 133,948 units, which were down 7.47% YoY over the same period in 2021. Maruti Suzuki said that the shortage of electronic components had a minor impact on the production of vehicles that are primarily sold in the domestic market and that it took all possible measures to minimise the impact.

Meanwhile, Mahindra & Mahindra (M&M) reported domestic PV sales at 27,663 units in February 2022 as compared to 15,391 units in February 2021, up 79.73% YoY. The company witnessed a high growth of 79% for its SUVs segment as it recorded highest ever monthly sales. While most of its segments have witnessed a robust monthly sales number, the company continues to monitor the semi-conductor related parts supply and take corrective actions as appropriate. It expects the demand to pick up as the Covid situation is relaxed further.

Tata Motors, which is the third-largest domestic passenger vehicle seller in India after Maruti Suzuki and Hyundai, saw monthly sales of 39,981 units in the month of February 2022. The company had witnessed its highest-ever monthly passenger vehicle sales, highest-ever SUV sales and highest-ever EV sales along with the Tata Nexon and Tata Punch both crossing the 10,000 sales mark in January 2022 and the momentum has continued in February as well. As compared to February 2021, the homegrown carmaker’s domestic volumes increased by nearly 47%.