Passenger vehicle sales triple in May

The industry estimates sales of 295,000 passenger vehicles in May, compared with 103,000 units dispatched in May 2021. Automakers in India report wholesale dispatches from factories to dealerships, and not retail sales to customers.

Even as demand for passenger vehicles remains strong, production continues to be limited due to a global shortage of semiconductors, senior industry executives told ET.

“The inflow of enquiries and bookings remain healthy at the moment,” said Shashank Srivastava, senior executive director (marketing and sales) at market leader .

Supplies of semiconductors – a key component in modern vehicles — are yet to normalise and that is affecting the availability of vehicles in the market. Maruti Suzuki, which has pending orders for around 300,000 units, is realising 92-95% of its production plan at present.

Srivastava, however, cautioned there could be some impact on demand later on due to banks raising retail interest rates after last month’s rate increase by the central bank.

Maruti Suzuki sold 124,474 passenger vehicles last month, compared with 32,903 units a year earlier. The numbers are not comparable as the operations in May 2021 were significantly affected due to Covid-related disruptions, the company said.

At Korean auto major Hyundai Motor, its scheduled biannual maintenance shutdown of six days (May 16-21) reduced vehicle availability and affected sales numbers in May. The company sold 42,293 vehicles last month, as against 25,001 units in May 2021. In a statement, Hyundai Motor India said: “Starting June 2022, production will be enhanced to cater to the high demand for domestic and export markets, ensuring timely deliveries of long waiting customers.”

Meanwhile, homegrown auto major

continued to fare well, posting sales of 43,341 passenger vehicles, the highest on record for a month. The sales included 3,454 electric vehicles, also the highest registered by the company in a month.

Rival Mahindra & Mahindra too reported robust growth and more than tripled sales to 26,904 units, buoyed by strong demand for its SUVs like the XUV700 and Thar. Veejay Nakra, president of its automotive division, said: “We are witnessing strong bookings and have a robust pipeline. We announced the launch of Scorpio-N, which is generating very high interest levels … We are closely monitoring the supply chain-related issues, which continue to constraint volumes and are taking appropriate actions to mitigate the impact.”

Kia India managed to sustain its sales momentum, with volume increasing 69% to 18,718 units. Toyota Kirloskar Motor sold 10,216 units last month, compared with 707 units sold in May 2021.

Honda’s sales grew four-fold to 8,188 units last month. Yuichi Murata, director (marketing and sales) at Honda Cars India, said while demand stayed strong, supply chain-related constraints remained a hindrance.

In the two-wheeler segment too, volumes grew on a low base. Chennai-based

sold 191,482 units last month, compared with 52,084 units a year earlier. The company also said the numbers were not comparable because of the impact of Covid on operations last year.

Commercial vehicle sales increased on a fast clip with a revival in economic activity. Market leaders Tata Motors and

posted sales growth of 235% (to 31,4141 units) and 355% (to 12,458), respectively, from a year earlier.

Tractor sales went up, supported by expectations of the timely arrival of the monsoon rains. Mahindra sold 34,153 units, an increase of 50% from May last year. Hemant Sikka, president of the farm equipment sector at Mahindra, said: “With the timely arrival of the south-west monsoon and forecast of a normal monsoon, kharif crop is expected to deliver record production. Food prices continue to be high, ensuring better remuneration for farmers for their produce, creating a positive sentiment and higher demand for tractors and agri implements.”