News: Automobile Industry India Sales
The automobile industry has been through turmoil with pandemic and semi-conductor ship shortage issues impacting the growth of the industry. Recently, there was some relief when the Government of India reduced the duty on steel and fuel. As per the Automobile Industry India Sales the May’22 sales were flat yet again compared to the pre covid levels. However, the sales saw an enormous growth compare to the previous year. As per the FADA report, May’22 saw a 207% increase with all categories being green.
The growth recorded by respective sectors is as follows, two-wheeler 198%, the three-wheeler 696% Passenger Vehicle 204%, Tractors 216% and Commercial Vehicles 278%. Further, the sales when compared with 2019 the results are negative other than the passenger vehicle and Tractors.
The reduced fuel prices due to duty reduction should boost vehicle sales majorly in the two-wheeler segment. However, the hike in third-party insurance premiums may become a hurdle and impact buyer decisions.
Sales Reported by Leading Automobile Companies in India
Tata Motors Limited reported sales of 76,210 vehicles for May 2022 (domestic and international), compared to 26,661 units last year in May. Tata Motors domestic sales saw a 204% YoY growth when compared to May 2022 and 2021 sales.
Similarly, Mahindra Auto recorded a 208% growth in May 2022 by selling 26,632 SUVs and 53,726 vehicles overall.
Maruti Suzuki India Limited did not report high sales figures as compared to other manufacturers. As the operations of the Company in May 2021 were affected remarkably due to COVID-19 related disruptions. Maruti Suzuki reported total sales of 161,413 units in May 2022. Total sales of May comprise 128,000 units of domestic sales. Whereas, sales to other OEMs of 6,222 units and exports of 27191 units highest-ever monthly exports by Maruti Suzuki.
Moreover, Hyundai Motors India Ltd reported a total sales of 67% with 51,263 units in May 2022. Wherein, the domestic sales reported of 42,293 units compared to 25,001 last year.
The automotive industry shall monitor June sales very closely. As the reduction in duty by the government of India shall accelerate the sales for the first quarter of FY2022-23.