Auto Sales in January 2022: Demand weakness continues; Tata Motors shines brighter than peers

5paisa Research Team

Last Updated: 12th December 2022 - 01:31 am

Sequential growth recorded in wholesale dispatches, but many OEMs are still far off from January 2021.

Automobile sales volumes continued to remain under pressure in January 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. On a sequential basis, industry volumes have shown growth as compared to December 2021 but figures are still way off as compared to January 2021. The sentiment however is improving with positive indicators the relaxing of COVID-19 restrictions, growing demand for electric vehicles and growth in exports.

Passenger Vehicles:

Market leader, Maruti Suzuki reported domestic sales in January 2022 at 128,924 units, which were down 7.25% 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 19,964 units in January 2022 as compared to 20,634 units in January 2021, down 3.25% 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. Despite various global supply chain challenges, the company has fulfilled its commitment of billing the first 14000 XUV700s by January 2022 and have registered close to 1,00,000 bookings since launch, a major milestone in the Indian SUV Industry.

Tata Motors, which surprisingly grabbed the second position in December 2021 from Hyundai Motors, saw monthly sales of 40,777 units in the month of January 2022- 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. As compared to January 2021, the homegrown carmaker’s domestic volumes increased by 51.15%.

Domestic PV Sales	Jan-22	Jan-21	% change

Maruti Suzuki	128,924	139,002	-7.25%

Tata Motors	40,777	26,978	51.15%

Mahindra & Mahindra	19,964	20,634	-3.25%

Two-wheelers:

The country’s largest two-wheeler maker, Hero MotoCorp reported disappointing domestic volumes which came in at a low 358,660 units in January, a fall of 23.33% as compared to the same period last year. The company said that the third wave of the pandemic, subsequent staggered state-wise lockdowns and restricted movement impacted the overall sales volume of the month. Meanwhile, its competitors - Bajaj Auto and TVS Motors saw declines of 13.92% and 18.23% in domestic sales for the month.

Royal Enfield domestic sales stood at 49,726 units, down by 22.75% YoY as compared to 64,372 units in January 2021.

Domestic 2-W Sales	Jan-22	Jan-21	% change

Hero MotoCorp	358,660	467,776	-23.33%

TVS Motor	167,795	205,216	-18.23%

Bajaj Auto	135,496	157,404	-13.92%

Royal Enfield	49,726	64,372	-22.75%

Commercial Vehicles (CV):

Mahindra and Mahindra commercial Vehicles registered growth across all segments and ended the month with an overall impressive growth of 47.75% in domestic CV sales while other players had a single-digit YoY growth. They have launched the ‘Highest Mileage or Give Truck Back’ guarantee on their entire HCV, ICV & LCV truck range, which has received a very positive response from the market.

Tata Motors, TVS Motors, Bajaj Auto and Ashok Leyland dispatched 31,708 units (up 3.38% YoY), 12,649 units (up 0.76% YoY), 14,160 units (up 6.04% YoY) and 12,709 units (up 2.83% YoY), respectively, in January 2022.

Domestic CV Sales	Jan-22	Jan-21	% change

Tata Motors	31,708	30,671	3.38%

TVS Motor	12,649	12,553	0.76%

Mahindra & Mahindra	23,979	16,229	47.75%

Bajaj Auto	14,160	13,353	6.04%

Ashok Leyland	12,709	12,359	2.83%

Tractors:

Tractor sales in January were disappointing with Escorts and M&M both reporting lower sales numbers on a YoY basis. M&M reported domestic tractor sales which stood at 21,162 units in January 2022 as compared to 33,562 units in January 2021, down 36.9%.

In the domestic market, Escorts sold 5,103 units in the month of January 2022, down 40% as compared to 8,510 units sold in January 2021. In the press release company has mentioned this decline is due to unseasonal rainfall in certain parts of the country, the high base of last year and inflationary impact on short term demand leading to a higher level of channel inventory in certain geographies. Going forward with improved liquidity in the hand of farmers, overall high rabi sowing and good water level reservoirs, they expect the same will help boost demand recovery in the coming months.

Domestic Tractor Sales	Jan-22	Jan-21	% change

Mahindra & Mahindra	21,162	33,562	-36.95%

Escorts	5,103	8,510	-40.04%

Also Read : Tata Motors, Maruti gain after November car sales data; TVS Motor skids

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