Auto Sales in May 2022: Figures show improvement when compared to previous month; Hero MotoCorp makes a comeback!
5paisa Research Team
Last Updated: 14th December 2022 - 11:06 pm
The stressed two-wheeler segment sees relief with a reduction in excise duty on petrol and diesel by the Central Government.
Automobile sales volumes are showing gradual recovery. On a YoY basis, the growth figures are not comparable with that of May 2021, as the covid-led lockdown had significantly disrupted the auto sales. However, most auto companies have performed well when compared to the sales of April 2022. The tractor segment and the commercial vehicle (CV) segment were the winners as they had been for several months now. The semiconductor issue is still serious, and the shortage of other equipment as well, is harming the sector. The sentiment however is improving with positive indicators like relaxing of COVID-19 restrictions, growing demand for electric vehicles and growth in commercial vehicles.
Passenger Vehicles:
Market leader, Maruti Suzuki reported domestic sales in May 2022 at 124,474 units, which were up 278.3% 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. Also, the figures in May 2022 are not comparable with May 2021 due to covid-led lockdown impact.
Meanwhile, Mahindra & Mahindra (M&M) reported domestic PV sales at 26,904 units in May 2022 as compared to 8,004 units in May 2021, up 236.13% YoY. The company is witnessing strong traction in demand with all its brands performing well including XUV700 and Thar. It is witnessing strong bookings and has a robust pipeline. The company announced the launch of Scorpio-N, which is generating very high interest levels and promises to be yet another blockbuster from Mahindra.
Tata Motors has become one of the favourites in auto sector as it saw monthly sales of 43,341 units in the month of May 2022. The sales have improved on a month-on-month basis and the EV cars are witnessing strong order pipeline. As compared to May 2021, the homegrown carmaker’s domestic volumes increased by 185.50%.
|
Domestic PV Sales |
May-22 |
May-21 |
% change |
|
|
|
||||
|
1,24,474 |
32,903 |
278.31% |
|
|
|
|
||||
|
43,341 |
15,181 |
185.50% |
|
|
|
|
||||
|
26,904 |
8,004 |
236.13% |
|
|
|
|
Two-wheelers:
The country’s largest two-wheeler maker, Hero MotoCorp reported positive domestic volumes which came in at 4,66,466 units in May 2022, an increase of 192.34% as compared to the same period last year. Its sales have grown 16% against April 2022 sales. The company said that government’s decision of reducing excise duty on fuel has provided a much needed relief. It also said that it remains committed to bringing the best of Electric Vehicles (EVs) for our customers across the globe.
Meanwhile, its competitors - Bajaj Auto and TVS Motors saw increase of 59.26% and 267.64%, respectively in domestic sales for the month.
Royal Enfield domestic sales stood at 63,643 units, up by 133.18% YoY as compared to 27,294 units in May 2021.
|
Domestic 2-W Sales |
May-22 |
May-21 |
% change |
|
|
|
||||
|
4,66,466 |
1,59,561 |
192.34% |
|
|
|
|
||||
|
1,91,482 |
52,084 |
267.64% |
|
|
|
|
||||
|
96,102 |
60,342 |
59.26% |
|
|
|
|
||||
|
Royal Enfield |
63,643 |
27,294 |
133.18% |
|
|
|
Commercial Vehicles (CV):
Tata Motors Commercial Vehicles registered growth across all segments and ended the month with an overall impressive three-digit growth of 187.85% in domestic CV sales while other players too witnessed strong YoY growth. Bajaj Auto’s CV segment witnessed the highest growth of 3220.90%.
Mahindra & Mahindra, Bajaj Auto and Ashok Leyland dispatched 21,149 units (up 192.27% YoY), 16,206 units (up 3220.9% YoY), and 12,458 units (up 355% YoY), respectively, in May 2022.
|
Domestic CV Sales |
May-22 |
May-21 |
% change |
|
|
|
||||
|
32,818 |
11,401 |
187.85% |
|
|
|
|
||||
|
15,924 |
12,473 |
27.67% |
|
|
|
|
||||
|
21,149 |
7,236 |
192.27% |
|
|
|
|
||||
|
16,206 |
488 |
3220.90% |
|
|
|
|
||||
|
12,458 |
2,738 |
355.00% |
|
|
|
|
Tractors:
Tractor sales in May were a turnaround story with Escorts and M&M both reported higher sales numbers on a YoY basis and monthly basis as well. M&M reported domestic tractor sales which stood at 34,153 units in May 2022 compared to 22,843 units in May 2021, up by 49.51%
In the domestic market, Escorts sold 7,667 units in the month of May 2022, up 24.5% as compared to 6,158 units sold in May 2021. In the press release company mentioned that it is witnessing rural sentiment gradually improving inspite of low crop yields due to extreme heat conditions this harvest season, on account of better crop price realization and forecast of normal rainfall and possible timely sowing this year. With recent Government actions, inflation may stabilise in near term and operating leverage may further possibly help in partially diluting the impact on margins in coming quarters.
|
Domestic Tractor Sales |
May-22 |
May-21 |
% change |
|
|
|
||||
|
34,153 |
22,843 |
49.51% |
|
|
|
|
||||
|
7,667 |
6,158 |
24.50% |
|
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